Deutsche Bank seeks crypto custody license approval in Germany

Deutsche Bank is looking to grow its digital assets and custody business

article-image

Nataly Reinch/Shutterstock, modified by Blockworks

share

German investment bank Deutsche Bank has applied to Germany’s financial regulator to provide custody services for cryptocurrencies.

“I can confirm that Deutsche Bank has applied to BaFin for a license for crypto custody,” a spokesperson for the bank told Blockworks via email on Tuesday. 

Bloomberg first reported the development, citing Deutsche Bank’s global head of corporate bank, David Lynne. 

Lynne reportedly said the bank is growing its digital assets and custody business. BaFin declined to comment.

Deutsche’s application to BaFin is seen as part of a broader strategy to boost fee revenue for its corporate bank unit. This move aligns with its subsidiary asset management firm DWS’s efforts to expand income through offerings related to digital assets.

In February, DWS was reportedly considering investments in two German crypto companies to boost growth. The companies were Deutsche Digital Assets, which offers crypto exchange-traded products, and Tradias, a market-making firm.

BaFin keeps an eye on companies in Germany that provide services related to crypto assets, including crypto trading platforms, crypto ATM operators and companies offering crypto custody services.

Obtaining a BaFin license allows crypto companies to confidently advertise and offer their services in the German market.

The regulator has already granted crypto custody licenses to several companies, including a unit of Germany’s Boerse Stuttgart stock exchange, Berlin-based Finoa and well-known crypto exchange Bitpanda.

In Feb. 2022, BaFin cautioned about the speculative nature and risks of investing in crypto assets. It advised against relying on investment recommendations found on social media, as they can be unreliable or misleading.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screenshot 2024-05-23 091855.png

Research

Bitcoin L2s aim to boost scalability while preserving decentralization and security, unlocking a better user experience, and new avenues for Bitcoin-powered innovations. However, no existing Bitcoin L2 leverages the full security of Bitcoin.

article-image

Sponsored

As part of the #Breakout2024 plans, Radix has introduced Token Trek

article-image

House members ask Gensler to keep a “consistent and equitable approach” with ether ETF proposals after the agency approved spot bitcoin ETFs in January

article-image

Using old-world instruments to address crypto user experience challenges goes against what this industry set out to do

article-image

And, weeks of a potential crypto ETF decision are no stranger to chaos

article-image

The FIT21 Act marks the second crypto-focused piece of legislation to advance in Congress this month

article-image

More than half of Solana transactions fail