• Germany’s largest banking institution, Deutsche Bank, has initiated proceedings to secure a license that will allow it to offer digital asset custody services.
• This comes as part of the bank’s strategy to increase fee income generated by its corporate banking division and diversify its 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.
Germany’s Deutsche Bank Applies For Crypto Custody Service License
Deutsche Bank, Germany’s largest banking institution, has taken steps towards offering digital asset custody services in the country. This move is part of a larger strategy aimed at increasing fee income generated by the bank’s corporate banking division and diversifying its portfolio. To achieve this goal, Deutsche Bank has applied for a license from Bafin, the German securities watchdog.
Deutsche Bank’s Strategic Shift
David Lynne, head of the bank’s commercial banking unit, recently announced these plans at a conference. The intention is to integrate digital assets into their suite of offerings and provide customers with more diverse options. Furthermore, this move aligns with strategies employed by DWS Group – Deutsche Bank’s investment subsidiary – which has been focused on increasing revenue through digital asset-related products and services.
Growing Interest In Crypto Custody Services
The global banking sector appears to be increasingly interested in providing crypto custody solutions – clearly demonstrating its progressive attitude towards embracing digital assets as a part of mainstream financial operations. Ripple recently purchased Metaco, a Swiss firm specializing in cryptocurrency custodial services for institutions worldwide; further evidence that banks are taking cryptocurrencies seriously as an integral component of their financial businesses.
Although initially suggested late last year by Deutsche Bank’s corporate banking division that they would introduce such services soon enough; there remains no clarity regarding when exactly this will happen or what form it will take upon launching officially.
Deutsche Bank’s decision to apply for a crypto custody service license shows its commitment towards fostering more expansive digital asset portfolios and generating more fee income through offering customers diverse offerings from which they can benefit immensely from in terms of investments and returns on investments alike