Several institutions from the traditional finance industry have been expanding their services by integrating crypto products. Germany-based Deutsche Bank is the latest one to join the list. The $1.4 trillion asset manager has applied for a regulatory license to operate a custody service for assets like crypto.
Deutsche Bank is building its crypto custody business: Exec
The latest initiative is intended to notch up the bank’s fee income. Alongside, this move also echoes the efforts of the Bank’s investment arm, DWS Group, to bolster income from digital asset-related offerings. David Lynne, the Global Head at Deutsche Bank’s Corporate Bank, reportedly said at a recent conference,
“We’re building out our digital assets and custody business. We just put our application into the BaFin for the digital asset license.”
BaFin is essentially Germany’s securities watchdog. Deutsche Bank’s Corporate Bank, on the other hand, caters to corporate clients, financial institutions, investors, and issuers. It is basically the lender’s commercial banking unit.
Of late, several crypto custody-related developments have transpired. Ripple, for instance, acquired Metaco, a Swiss custody firm, last month in an attempt to expand its international presence and widen its service range. The blockchain payments firm shelled out $250 million to complete the deal.
Prior to that, Standard Chartered’s crypto asset custodian, Zodia Custody, raised $36 million via funding, that was led by Japan’s SBI Holdings. Parallelly, exchange group Nasdaq is also attempting to fill in the boots of crypto middlemen. As reported recently, it is preparing to launch its own set of crypto custody services in the months to come. The exchange group is “pushing ahead” to get all the necessary technical infrastructure and regulatory approvals. In fact, it has also applied to the New York Department of Financial Services, for a limited-purpose trust company charter.
Other prominent names including BNY Melon, Fidelity, and BNP Paribas, also have their toes immersed in the crypto safekeeping service space.