• Germany’s largest banking institution, Deutsche Bank, has initiated proceedings to secure a license that will allow it to offer digital asset custody services in the country.
• This marks a significant stride in the bank’s journey towards fostering a more expansive digital asset portfolio.
• The global banking landscape is showing an increased interest in providing crypto custody services, indicative of the industry’s progressive embrace of digital assets.
Deutsche Bank Applies for Crypto License
Germany’s largest banking institution, Deutsche Bank, has recently applied for a license from Bafin – the German securities watchdog – that would allow it to provide cryptocurrency custody services in the country. If approved, this would be a major step forward for the bank and its foray into the growing world of cryptocurrency.
Expanding Digital Asset Portfolio
David Lynne – head of Deutsche Bank’s commercial banking unit – announced at a recent conference that this move was part of an overall strategy to increase fee income through greater diversification. He also revealed that DWS Group, Deutsche Bank’s investment subsidiary had been working hard to bring in more revenue through digital asset-related offerings, signifying their commitment to this emerging market.
Growing Interest From Global Banks
The increased interest from banks around the world in offering crypto custody services is indicative of how quickly they are embracing digital assets as part of their business model. Ripple recently acquired Metaco – a Swiss firm specializing in offering such services – reinforcing this trend among financial institutions.
Digital Asset Licence Timeline Unclear
Deutsche Bank first mentioned introducing digital asset custody services back in late 2020 but there was no timeline provided then on when it could be launched if approved by regulators. However with their application now submitted we may soon see progress made on this front.
Conclusion
Overall it seems like more and more traditional financial institutions are realizing just how important cryptocurrencies have become and are looking for ways to take advantage of them by providing custodial solutions or otherwise engaging with them directly. It remains to be seen what effect these moves will have on cryptocurrencies but these are certainly encouraging signs from some big players within finance and investing circles who may yet decide to make even bigger investments into cryptocurrencies going forward!