Germany’s Deutsche Bank Applies For Crypto Custody Service License

With a discernible shift in its strategic operations, 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, according to a report from Bloomberg. This move is a clear indication of the bank’s intent to immerse itself deeper into the growing world of cryptocurrency.

Taking Steps into the Crypto World

In a recently held conference, David Lynne, head of the bank’s commercial banking unit, announced Deutsche Bank’s plan to enhance its presence in the digital asset market. He revealed that the bank has already submitted its application to Bafin, the German securities watchdog. This marks a significant stride in the bank’s journey towards fostering a more expansive digital asset portfolio.

The bank’s effort to secure a digital asset license is not an isolated endeavor, but a part of a more comprehensive strategy. Lynne explained that the move is designed to augment the fee income generated by Deutsche Bank’s corporate banking division. The intention is to integrate digital assets into their suite of offerings, providing a more diversified portfolio for their customers.

Deutsche Bank’s approach to integrating digital assets is in sync with the strategies employed by its investment subsidiary, DWS Group. The firm has also been working tirelessly to increase revenue through digital asset-related offerings, reinforcing the bank’s commitment to this emerging field.

Deutsche Bank’s corporate banking division initially suggested the possibility of introducing a digital asset custody service in late 2020. However, there was no clarity about the timeline of the launch.

A Growing Trend

The global banking landscape is showing an increased interest in providing crypto custody services, indicative of the industry’s progressive embrace of digital assets. In a recent noteworthy development, Ripple, the blockchain payment powerhouse, enhanced its international footprint by purchasing Metaco, a Swiss firm specializing in custody services. 

This strategic acquisition, worth $250 million, allows Ripple to extend its range of services. Other banking giants are not far behind in this trend either. Institutions like BNY Melon, Fidelity, and BNP Paribas are actively exploring opportunities in the realm of cryptocurrency safekeeping.