Deutsche becomes latest bank to move into crypto custody market
The banking giant already has a presence in crypto and is hoping its push into crypto custody will prove lucrative.
Deutsche Bank is pushing into the increasingly popular crypto custody market.
The German banking giant has applied for regulatory permission to operate a custody service for digital assets such as cryptocurrencies in Germany.
“We’re building out our digital assets and custody business,” said David Lynne, who heads up the bank’s commercial banking business.
Lynne said that Deutsche Bank had applied to BaFin for the digital asset licence.
Deutsche Bank publicly spoke about its move into the burgeoning crypto custody market in 2001.
It said it was making the move to offer an “institutional-grade hot/cold storage solution with insurance-grade protection”.
It is understood the banking giant plans to launch its push into crypto custody in stages.
It will allow users to buy and sell digital assets via brokers and provide a gamut of services including lending and fund administration.
These services will be aimed at asset managers, wealth managers, family offices and corporates, the bank said.
The business model would begin collecting custody fees, the bank said, then later charging fees for tokenisation and trading.
Deutsche Bank has been active in the crypto market for some time.
iis asset management group, DWS, has reportedly entered into negotiations to buy a stake in two crypto firms, Tradias and Deutsche Digital Assets.
Big banks are increasingly announcing plans to enter the crypto customs market.
The Bank of New York Melon, the world’s biggest custodian bank, is the latest big bank to move into the crypto custody market.