Deutsche Bank AG, Germany’s largest banking institution, has reportedly submitted an application for a digital asset custody license with the German financial regulator BaFin. According to Bloomberg, this move is aimed at diversifying the bank’s revenue streams and expanding its digital asset custody services, including cryptocurrencies.
This follows a similar shift by the bank’s investment arm, DWS Group, which expressed interest in investing in German crypto firms such as Deutsche Digital Assets and Tradias.
Deutsche Bank had announced earlier plans
Deutsche Bank’s corporate bank division had previously announced plans to offer digital asset-related services in 2020, but no specific timeline was provided. However, David Lynne, the head of the bank’s commercial banking unit, recently disclosed that the bank is actively developing its digital assets and custody business, and has applied for a license with the country’s financial regulator.
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While the Bank has been critical of Bitcoin and the crypto market’s volatility in the past, its stance towards the industry appears to have evolved in 2023. Earlier this year, Deutsche Bank Singapore collaborated with Memento Blockchain to successfully conduct trials for a tokenized investment platform called DAMA (Digital Assets Management Access), indicating a growing interest in digital assets.
In addition to the Bank, German securities processor Deutsche WertpapierService Bank (Dwpbank) has also launched a Bitcoin-focused platform called wpNex, offering crypto accounts to retail customers alongside their existing bank accounts, without requiring additional Know Your Customer processes.
The traditional cautious approach of German banking institutions towards the crypto industry seems to be shifting in 2023, as major banks continue to explore the potential of incorporating digital asset-focused services for their clients.
