- Deutsche Bank has applied for a crypto custody license
- The bank has been a keen observer of crypto trends for years
- The move into crypto represents a further example of its expansion plans
Banking giant Deutsche Bank has applied for regulatory permission to operate a digital asset custody service as part of the bank’s strategy to broaden its scope. The move mirrors efforts by Deutsche Bank’s investment arm DWS Group to move into the digital asset market and capture the growth in the sector among institutional buyers. Deutsche Bank’s corporate division first hinted at plans to introduce digital asset custody in late 2020 but until now had gone quiet on the matter.
First a Watcher, Now an Actor
Deutsche Bank’s involvement in crypto may have only just been formalized, but it has been a keen observer for years. In 2019 the bank predicted a rise in cryptocurrency usage over the next decade on the back of a “fragile” fiat economy, with cryptocurrency poised to replace traditional cash after a potential “backlash” from citizens if the fiat system collapses.
A year later it suggested, correctly, that the newly-emerged COVID pandemic was “accelerating the rise of central bank digital currencies”, while in 2021 it compared Ethereum to “digital silver”.
Deutsche Bank “Building Out” Digital Asset Business
Clearly, the bank’s interest in crypto has progressed from external commentary to active investment in its infrastructure, with the head of its commercial banking unit, David Lynne, saying at a conference on Tuesday that Deutsche is “building out our digital assets and custody business,” starting with a custody solution.
Deutsche Bank is walking in the footsteps of other banking giants such as BNP Paribas which has been involved in crypto custody since July 2022.
