Deutsche Bank AG, one of the world’s largest banking institutions, has applied for regulatory permission to operate as a crypto custodian in Germany. This news comes shortly after asset management giant BlackRock filed with the SEC to create a spot bitcoin ETF. A spokesperson for the bank confirmed the news, saying, “I can confirm that we applied for the BaFin license for crypto custody.”
The bank had previously announced in February 2021 that it was exploring cryptocurrency custody in order to offer “institutional-grade hot/cold storage solution with insurance-grade protection.” The digital asset custody platform would eventually allow users to buy and sell digital assets through prime brokers and provide services such as taxation, valuation services, fund administration, lending, staking, and voting, and more.
Deutsche Bank has been active in the crypto space for a while. Most recently, the bank’s asset management group, DWS, reportedly entered into negotiations to acquire a minority stake in two crypto companies – Deutsche Digital Assets, a provider of exchange-traded products, and trading firm Tradias.
At a conference on Tuesday, David Lynn, who runs Deutsche Bank’s commercial banking unit, said that the bank is now “building out [its] digital asset and custody business.” DWS CEO Stefan Hoops also commented in February that the current low crypto prices could create “interesting opportunities” for the asset management division.