Deutsche Bank applies for license for cryptocurrency custody service


Planning to start a virtual currency custody business

Deutsche Bank AG, a global megabank, announced on the 20th that it has applied for regulatory approval to operate a custody service for digital assets such as crypto assets (virtual currencies). Bloomberg reported.

“We are strengthening our digital assets and custody business. We have submitted an application for a digital assets business license to the German Federal Financial Supervisory Authority (BaFin),” said David Lin, head of commercial banking at Deutsche Bank. did,” he said.

It also goes on to say that the move is part of a broader strategy to increase fee income in the corporate banking sector.

What is custody

Custody refers to holding and managing assets on behalf of investors. It refers to a service that performs a wide range of operations, such as asset custody, settlement related to trading, receipt of principal and interest, dividends, and exercise of voting rights. A company that performs custody is called a custodian. .

▶Cryptocurrency Glossary

As of 2021, Deutsche Bank was planning to launch a cryptocurrency custody and brokerage business. Earnings pillars were mainly custody fees and tokenization fees.

In the same year, he published a report on the theme of Bitcoin (BTC). Bitcoin has grown to a size that cannot be ignored, and the issue is limited transaction volume.

Details have yet to be revealed as to whether the application will only apply to the custody business or whether it will also include other cryptocurrency-related businesses.

connection: “Bitcoin on a scale that cannot be ignored” = Deutsche Bank report

Investment division to develop cryptocurrency ETP

DWS Group, the investment arm of Deutsche Bank, is also beginning its foray into the crypto space.

In April, the DWS Group announced that it would partner with Galaxy Digital, a major US cryptocurrency investment firm, to develop an exchange-traded product (ETP) for digital assets in Europe.

The two companies will provide European investors with a cryptocurrency investment solution that can be easily accessed through a traditional brokerage account.

Fiona Bassett, Global Head of Systematic Investment Solutions at DWS, explained:

There is growing customer interest in digital assets and the need for secure access to digital assets.

Galaxy Digital and DWS’s informed approach and commitment to providing investment services through well-known and trusted channels ensures that our It is possible to develop products that have been extensively researched.

It was also reported in February that DWS Group was considering investing in two German cryptocurrency companies. Companies in talks with DWS Group included crypto exchange product provider Deutsche Digital Assets and market maker Tradias.

Major securities companies also work on virtual currency

In Germany, major securities services provider DekaBank announced a partnership with Swiss crypto custody firm METACO in January. In the future, we plan to provide custody and management services for digital assets including virtual currencies for institutional investors.

connection: Major German securities company to provide cryptocurrency-related services for institutional investors

The post Deutsche Bank applies for license for cryptocurrency custody service appeared first on Our Bitcoin News.