Deutsche Bank to offer crypto-asset custody

The German financial conglomerate Deutsche Bank has filed with BaFin for a license as a custodian of digital assets. Bloomberg reports this.

David Linn, head of the bank’s commercial division, said that the move forms part of a broader strategy to boost fee income from corporate clients.

“We are developing our digital assets and custody business,” he said.

According to Linn, the initiative also reflects the interest of the DWS Group’s investment division in cryptocurrencies and the potential upside associated with them.

In 2020, Deutsche Bank said that it planned to launch a service to custody digital assets, aimed at institutional investors. According to company representatives, the main aim is ‘to ensure security and accessibility for clients, offering an institutional-grade solution’.

In 2021, the bank’s analysts concluded that Bitcoin has the potential to become “the digital gold of the 21st century”, despite volatility.

Earlier in June 2023, the U.S. investment bank Cowen announced the closure of its crypto unit a year after its launch. The company cited weak economic conditions and an uncertain regulatory environment for digital assets in the United States.