Deutsche Bank expands investment into digital assets. Deutsche Bank has submitted a regulatory license application to Bafin, seeking permission to offer custody services for digital assets like cryptocurrencies. This step aligns with Deutsche Bank’s plan to boost fee earnings in corporate banking. Moreover, it demonstrates the endeavors of DWS Group, the bank’s investment division, to enhance revenue through products associated with digital assets.
Deutsche Bank Expands Investment Into Digital Asset With New License Application
As reported by Bloomberg, Deutsche Bank has submitted an application to the German securities regulator Bafin, seeking a regulatory license to offer custody services for digital assets like cryptocurrencies.
David Lynne, the President of Deutsche Bank’s commercial banking business, stated that this action is a strategic step to expand fee revenue in corporate banking. Additionally, it highlights the efforts made by DWS Group, the investment arm of Deutsche Bank, to enhance income derived from products associated with digital assets.
We’re building out our digital assets and custody business. We just put our application into the Bafin for the digital asset license”
David Lynne
Deutsche Bank’s plans to offer digital asset custody were initially hinted at by its corporate banking business, with an expected timeline of completion by the end of 2020. However, no specific availability date has been indicated. At the time, Stefan Hoops was leading the division, but David Lynne took over a year ago when Hoops became the CEO of DWS.
Deutsche Bank AG, a German global investment bank and financial services firm headquartered in Frankfurt, Germany, is listed on both the Frankfurt and New York stock exchanges.
It was established in 1870 and has expanded through various acquisitions, including notable ones such as Disconto-Gesellschaft in 1929 (resulting in the name DeDi-Bank from 1929 to 1937), Bankers Trust in 1998, and Deutsche Postbank in 2010.
By 2018, Deutsche Bank’s network had expanded to 58 countries, with a strong presence in Europe, the Americas, and Asia. While it is considered the largest German banking institution, it is worth noting that the Sparkassen-Finanzgruppe has significantly more total assets. Since 2011, the Financial Stability Board has recognized Deutsche Bank as a globally significant bank.
Deutsche Bank AG operates through several business segments, including Corporate Bank, Investment Bank, Private Bank, Asset Management, Capital Release Unit, and Corporate and Other. The Corporate Bank sector encompasses the Global Transaction Bank and the German Commercial Clients business.
The Investment Bank segment offers origination, consulting, fixed-income, and currency sales and trading services. Private Bank Germany, private and commercial business abroad, and wealth management divisions form the Private Bank section.
The Asset Management business operates under the DWS brand, providing investment products to individual clients and institutions. The Capital Release Unit is responsible for stock sales and trading. The Corporate and Other sector manages centrally controlled income, expenses, and resources.
Recently, Taurus, a digital asset custody, tokenization, and trading platform backed by Deutsche Bank, announced a partnership with the Ethereum scaling network Polygon. This collaboration reflects the growing interest of financial institutions and large corporations in tokenizing real-world assets.
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