Deutsche Bank’s Strategic Move
Deutsche Bank, one of the world’s premier financial institutions, is on the cusp of a significant shift in its operations. The bank recently submitted an application to Bafin, the German securities regulator, in a bid to gain approval for providing custody services for digital assets, including cryptocurrencies.
This step indicates the bank’s proactive stance in embracing the digital asset space as part of its broader strategy to diversify revenue streams and boost its corporate banking unit’s income from fees.
Official Confirmation
David Lynne, head of Deutsche Bank’s commercial banking unit, officially confirmed the application at a recent conference. He announced that the institution was in the process of expanding its digital assets and custody business, signifying Deutsche Bank’s growing recognition of the potential of digital assets.
The bank has officially submitted its application to Bafin for a digital asset license, building on previous hints towards the introduction of digital asset custody.
History of Digital Interest
The corporate bank division, under the leadership of Stefan Hoops, initially hinted at plans to offer digital asset custody back in late 2020. However, no specific timeline was provided for the launch of this service.
When Hoops transitioned to the role of CEO at Deutsche Bank’s investment arm, DWS Group, Lynne took over the division. Under Hoops, the DWS Group has continued to make progress in the digital asset space, seeking to bolster its income from offerings tied to digital assets.
Future Plans
As Deutsche Bank awaits regulatory approval, it continues to concentrate on its growth strategy. Digital assets play a significant role in these future plans, reflecting the increasing interest and acceptance of digital assets within the traditional financial sector. The potential for Deutsche Bank’s entry into the digital asset custody arena is a clear indicator of this growing trend.
