Deutsche Bank Seeks Regulatory License for Crypto Custody Services as $1.4 Trillion Asset Manager

Bloomberg reported that according to an executive, Deutsche Bank is currently focused on developing its cryptocurrency custody business, aiming to increase its fee income. This endeavor aligns with the bank's investment arm, DWS Group, which is also working towards enhancing its revenue through digital asset-related offerings.

This move diverges from the bank's earlier research reports in 2020, which regarded bitcoin as "too volatile" to be a dependable store of value.

David Lynne, the Global Head of Deutsche Bank's Corporate Bank, stated at a recent conference that they are expanding their digital assets and custody business, having already submitted an application for a digital asset license to BaFin, Germany's securities watchdog. The Corporate Bank of Deutsche Bank primarily serves corporate clients, financial institutions, investors, and issuers as its commercial banking division.

Recent developments in the crypto custody space have seen various activities taking place. Standard Chartered's crypto asset custodian, Zodia Custody, secured $36 million in funding led by Japan's SBI Holdings. Additionally, Nasdaq, the exchange group, is preparing to launch its own crypto custody services in the coming months. It is actively working on obtaining the necessary technical infrastructure and regulatory approvals, including applying for a limited-purpose trust company charter from the New York Department of Financial Services.

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Bloomberg