Deutsche Bank is reportedly applying for digital asset custody licence from BaFin

Deutsche Bank is reportedly applying for digital asset custody licence from BaFin

After a cautious and long approach, the German banking industry has begun to warm up to crypto. In 2023, multiple partnerships will be launched, as well as crypto services.

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Bloomberg reported that Germany’s largest bank, Deutsche Bank has applied to the country’s financial regulator Federal Financial Supervisory Authority (BaFin) for a license to manage digital assets in an effort to increase its revenue streams.

The move follows a similar one made by the investment arm of the bank, DWS Group. It aims to expand digital asset custody, including cryptocurrencies. DWS Group had previously indicated an interest in investing in two German crypto firms. Deutsche Digital Assets and Tradias, two crypto exchange-traded product providers, were among the companies negotiating with DWS Group.

Corporate bank, a division of the banking giant, first announced plans to provide digital asset-related service in 2020. However, there was no timeline set for their introduction. Bloomberg reports that David Lynne, the head of Deutsche Bank’s Commercial Banking Unit, announced on June 20 that the lender was building its “digital asset and custody business” and had applied for a licence with the country’s financial regulator.

In 2023, Deutsche Bank’s attitude towards the crypto industry changed. In February, Deutsche Bank Singapore in partnership with Memento Blockchain successfully finished trials for a tokenized investment platform named Project DAMA (Digital Assets Management Access).

The digital asset fund launched with its own soulbound token and a direct fiat to digital on-ramp.

Related: Nearly half of Germans will invest in cryptocurrency: Report

Separately from the German securities processor Deutsche WertpapierService Bank, it also created for retail customers a -focused platform wpNex. The new platform allows customers to have crypto accounts along with their other bank accounts, without having to go through any additional Know Your Client processes.

Germany’s banks have remained away from crypto, citing the volatile and unpredictable nature of the industry. However, this position appears to be shifting in 2023, as major baking institutions explore the possibility of adding digital assets-centered services to clients.

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