Deutsche Bank Seeks Digital Asset Licence in Germany as Traditional Finance Expands Its Presence in the Cryptocurrency Space

According to multiple reports, including CoinDesk’s, Deutsche Bank has applied for a digital asset licence.

In February 2021, the banking behemoth unveiled its intentions to enter the realm of cryptocurrency custody.

Deutsche Bank is Germany’s largest bank with $1.4 Trillion in Assets.

“I can confirm that we applied for the BaFin licence for crypto custody,” a Deutsche Bank spokesperson told CoinDesk, referring to Germany’s financial regulator.

Deutsche Bank AG, a prominent player in the banking industry, has submitted an application for regulatory approval to operate as a crypto custodian in Germany. The bank made this announcement on Tuesday, following closely on the heels of asset management giant BlackRock’s filing with the SEC to establish a spot bitcoin ETF.

Back in February 2021, Deutsche Bank revealed its exploration of cryptocurrency custody as part of its plans to offer a secure storage solution with top-tier protection for institutional clients.

The envisioned digital asset custody platform, which the bank stated would be introduced in phases, aims to eventually enable users to engage in buying and selling digital assets through prime brokers. Additionally, the platform plans to provide services like taxation, valuation, fund administration, lending, staking, voting, and more.

Deutsche Bank has been actively involved in the cryptocurrency space for some time now. Most recently, reports surfaced of the bank’s asset management arm, DWS, being in talks to acquire a minority stake in two crypto companies: Deutsche Digital Assets, an exchange-traded product provider, and Tradias, a trading firm.

During a conference held on Tuesday, David Lynn, the head of Deutsche Bank’s commercial banking division, revealed the bank’s ongoing efforts to expand its digital asset and custody business, as reported by Bloomberg.

Back in February, Stefan Hoops, the CEO of DWS, expressed his view that the prevailing low cryptocurrency prices could potentially give rise to intriguing prospects for the asset management sector.

This follows Blackrock submitting an application for a spot Bitcoin ETF.

As well as rumours circulating that Fidelity will purchase Grayscale and do the same.

The Traditional Finance sector is coming, and seemingly coming hard!