Started by Bitcoin, Jun 21, 2023, 08:51 am
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Deutsche Bank, the largest bank in Germany, is seeking regulatory approval to offer custody services for digital assets, including cryptocurrencies. A Deutsche Bank executive explained that the digital asset move is part of the giant lender’s broader strategy to boost fee income.
Germany's largest bank by total assets, Deutsche Bank AG, has submitted an application to the country's Federal Financial Supervisory Authority (Bafin) seeking regulatory approval to offer custody services for digital assets, including cryptocurrencies, Bloomberg reported.
"We're building out our digital assets and custody business," David Lynne, head of Deutsche Bank’s commercial banking unit, said at a conference Tuesday. The executive added:
We just put our application into the Bafin for the digital asset license.
Lynne further shared that the move is part of the giant lender's wider strategy aimed at boosting fee income within Deutsche Bank’s corporate bank. Additionally, it reflects similar efforts by Deutsche Bank’s asset management arm, DWS Group, to enhance revenue through digital asset-related offerings, the publication conveyed.
Deutsche Bank’s corporate bank division initially indicated a plan to offer digital asset custody in late 2020 without providing a specific timeline for the service’s launch. At that time, the division was under the leadership of Stefan Hoops, who later joined DWS as CEO, and Lynne took over the division a year ago.
In Germany, Bafin is responsible for issuing licenses to entities wanting to offer crypto services in the country. The new Germany Money Laundering Act, which went into effect at the beginning of 2020, allows financial institutions to offer crypto products to their customers alongside traditional investments, such as stocks and bonds. At the time, Bafin reportedly received more than 40 “expressions of interest” from banks for approval to operate a crypto custody business in the future.
What do you think about Deutsche Bank applying for a license to offer crypto custody services? Let us know in the comments section below.
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