Deutsche Bank Applies for Crypto License to Become Trusted Custodian

• Deutsche Bank applies for a license to provide custody services for crypto.
• The move aligns with the bank’s objective of boosting fee income.
• This application positions Deutsche Bank to become a trusted custodian for crypto.

Deutsche Bank, one of the leading financial institutions in Germany, has taken a significant step towards embracing the digital asset revolution by applying for a license to provide custody services for cryptocurrencies.

The bank’s commercial banking unit, headed by David Lynne, confirmed the application during a conference, expressing commitment to expanding their digital assets and custody business. The application has been submitted to Bafin, the securities watchdog in Germany.

By obtaining this license, the bank aims to establish itself as a trusted custodian for digital assets, offering a secure storage solution for cryptocurrencies and other digital assets.

This strategic move aligns with Deutsche Bank’s broader objective of boosting fee income within its corporate bank division. As the demand for crypto continues to grow, the bank recognizes the potential for generating revenue through services related to digital assets.

Specifically, Deutsche Bank’s investment arm, DWS Group, has already embarked on initiatives to expand its income streams by offering products linked to digital assets, the Bloomberg report hinted.

Introducing digital asset custody services has been on Deutsche Bank’s radar since late 2020 when the corporate bank division initially hinted at its plans. However, specific details regarding the service’s launch timeline were not disclosed.

By securing a digital asset license, the bank positions itself to meet the evolving needs of its clients, including a secure and regulated environment to engage in cryptocurrencies.

In a related development, as Coin Edition reported early this year, the second most prominent bank in Germany, DZ Bank, has unveiled digital asset management for 800 institutional clients. Notably, the German bank has nearly €300 billion in assets under management.