“The market for digital assets is becoming increasingly mature and already comprises around one trillion US dollars,” according to a press release from Deutsche Bank’s fund subsidiary DWS in April. “We are seeing increasing customer interest in digital assets and the need for secure access to those assets,” said Fiona Bassett, Global Head of Systematic Investment Solutions at DWS. So it is hardly surprising that Deutsche Bank and its fund division DWS are also trying to penetrate the digital asset market.
Deutsche Bank applies for license for digital assets
The corporate banking division of Deutsche Bank had already announced in late 2020 that it plans to offer services related to digital assets, but never gave a specific date. But now the largest German bank has applied to the Federal Financial Supervisory Authority (BaFin) for a license to operate a custody service for digital assets.
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“We are expanding our business with digital assets and custodial services,” quoted Bloomberg as saying David Lynne, head of the commercial banking division, the so-called corporate bank. “We have just submitted our application for the digital asset license to BaFin,” Lynne said at a conference on Tuesday. According to Lynne, the move is part of a broader strategy to increase the corporate bank’s fee income. According to Bloomberg, Deutsche Bank’s fund division DWS is also trying to increase fees associated with digital assets.
As CoinDesk reports, the digital asset custodial platform would “eventually allow users to buy and sell digital assets through top-tier brokers and even offer services such as taxation, rating services and fund management, lending, staking and voting, etc.”
Penetrating Digital Asset Market
The application for a digital asset custodial license is not Deutsche Bank’s only effort to enter the digital asset market. As BTC-ECHO reports, Deutsche Bank invested around 65 million US dollars in the Swiss company Taurus in February, which offers an infrastructure for the issuance, custody and trading of digital assets.
In addition, Deutsche Bank reported in February that it had successfully completed a proof of concept together with Memento Blockchain, called Project DAMA (Digital Assets Management Access). The project has the potential to “provide a more efficient, secure and flexible solution for digital fund management and investment support,” according to Deutsche Bank’s press release.
In addition, DWS has agreed a strategic alliance with the US company Galaxy Digital, as the Deutsche Bank fund subsidiary announced in April. The goal is to “first develop a comprehensive range of exchange-traded products (ETPs) on certain digital assets in Europe.” In the future, DWS and Galaxy Digital could then develop more solutions for digital assets.
According to CoinDesk, the fund division is said to have also started negotiations to acquire a minority stake in two crypto companies. These are Deutsche Digital Assets, a provider of exchange-traded products, and the trading company Tradias.
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