- Deutsche Bank AG, Germany’s largest bank, has applied for regulatory permission to offer custody services for digital assets such as cryptocurrencies.
- David Lynne, who manages the bank’s commercial banking unit, said, “We are developing our digital asset and custody business.”
- Recent reports of BlackRock filing for a spot Bitcoin ETF in the US and rumors of Fidelity also applying for an ETF may have prompted Deutsche Bank to take action.
It has been reported that Deutsche Bank AG, Germany’s largest bank, has applied to offer crypto services.
Deutsche Bank Applies for Crypto Services
Deutsche Bank AG, Germany’s largest bank, has applied for regulatory permission to offer custody services for digital assets such as cryptocurrencies.
David Lynne, who manages the bank’s commercial banking unit, said, “We are developing our digital asset and custody business.” He referred to the application for a digital asset license made to Germany’s securities regulatory authority, Bafin.
Lynne said it is part of a broader strategy to increase fee revenue in Deutsche Bank’s corporate bank. It also reflects the efforts made by Deutsche Bank’s investment unit, DWS Group, to increase revenue from products linked to digital assets.
Deutsche Bank’s corporate banking units implied in late 2020 that they planned to introduce digital asset custody services, but did not specify when they planned to launch the service. At that time, the unit was managed by Stefan Hoops, but Lynne took over the role when Hoops joined as CEO of DWS a year ago.
Deutsche Bank May Want to Join the Race
Recent reports of BlackRock filing for a spot Bitcoin ETF in the US and rumors of Fidelity also applying for an ETF may have prompted Deutsche Bank to take action.
BlackRock, the world’s largest asset manager, filed an application with the SEC for a spot Bitcoin ETF in the US. This was followed by rumors that Fidelity Investments, the third-largest asset manager in the world, would apply for a spot Bitcoin ETF and acquire digital asset management company Grayscale, which caused a stir in the market.
Following these news, Deutsche Bank’s application for crypto services today indicates a possible domino effect. Major banks and companies may enter the race to offer crypto services and strive to be among the first.
