The asset management division of Deutsche Bank is reportedly aiming to invest in two German cryptocurrency companies in an attempt to boost growth.
Bloomberg reported that the company is discussing purchasing a minority share in Deutsche Digital Assets and Bankhaus Scheich-owned Tradias. Meanwhile, a collaboration with Mike Novogratz-run Galaxy Digital could also be on the cards.
Deutsche Bank Crypto Investments During Market Downturn
According to Crunchbase, Tradias is a fintech business with headquarters in Frankfurt that offers services for digital asset management, loans, stock exchange, and cryptocurrency trading. While Deutsche Digital Assets is a Frankfurt-based provider of cryptocurrency exchange-traded instruments.
Meanwhile, Stefan Hoops, CEO of DWS Group, expresses optimism about the future of digital assets. The executive recently stated during an earnings call that the company has begun to analyze strategic partners and undertake due diligence on prospective targets, including digital assets.
Greenwashing Allegations Surrounded DWS Last Year
DWS Group, one of the top asset managers, seems to be eyeing the digital asset market during a downturn. Since the last quarter of 2021, crypto winter has grabbed the markets, costing over $1 trillion in capitalization. The FTX implosion has also kept the market gains in the red. That said, the reports also come after the May 2022 “greenwashing” allegations.
Last year, German investigators raided DWS over claims that it misled clients about “green” investments. However, DWS reiterated its rejection of any investor misinformation.
The prosecutors asserted that they were probing whistleblower and news claims that DWS had engaged in “greenwashing.” Greenwashing is misrepresenting investments as being “more sustainable” than they were.
Meanwhile, in Germany, DekaBank, one of the major providers of securities services to the German Savings Banks Finance Group, is also eyeing crypto. BeInCrypto reported last week that DekaBank has partnered with METACO, a Switzerland-based cryptocurrency firm, to offer crypto-related services to institutions.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/deutsche-bank-eyeing-crypto-market-downturn/