Deutsche Bank Expands Investment Into Digital Asset With New Filing For License

Key Points:

• Deutsche Bank has applied to Bafin for a regulatory license to provide custody services for digital assets such as cryptocurrencies.
• The move is part of Deutsche Bank’s strategy to increase fee income from corporate banking.
• It also reflects the efforts of DWS Group, the bank’s investment arm, to expand revenue from digital asset-related products.

According to Bloomberg, Deutsche Bank has applied to the German securities regulator Bafin for a regulatory license to provide custody services for digital assets such as cryptocurrencies.

According to David Lynne, president of Deutsche Bank’s commercial banking business, the move is part of the bank’s plan to grow fee revenue from corporate banking. It also shows attempts by DWS Group, Deutsche Bank’s investment arm, to increase income from digital asset-related products.

“We’re building out our digital assets and custody business. We just put our application into the Bafin for the digital asset license,” Lynne was referring to Germany’s securities regulator.

Deutsche Bank’s corporate banking business has hinted at intentions to provide digital asset custody by the end of 2020 but has not indicated when the service would be available. Stefan Hoops was in charge of the division at the time, but Lynne took over a year ago when Hoops joined DWS as CEO.

Deutsche Bank AG, or Deutsche, is a German global investment bank and financial services firm based in Frankfurt, Germany, and dual-listed on the Frankfurt and New York stock exchanges. It was formed in 1870 and expanded via many acquisitions, notably Disconto-Gesellschaft in 1929 (as a result of which it was known as Deutsche Bank und Disconto-Gesellschaft or DeDi-Bank from 1929 to 1937), Bankers Trust in 1998, and Deutsche Postbank in 2010.

The bank’s network reached 58 countries as of 2018, with a strong presence in Europe, the Americas, and Asia. It is a component of the DAX stock market index and is often referred to be the biggest German banking institution, despite the fact that the Sparkassen-Finanzgruppe has far more total assets. Since 2011, the Financial Stability Board has recognized Deutsche Bank as a worldwide systemically significant bank.

Deutsche Bank AG is a corporation that provides corporate banking and financial services. Corporate Bank, Investment Bank, Private Bank, Asset Management, Capital Release Unit, and Corporate and Other are its business segments. The Global Transaction Bank and the German Commercial Clients business are both part of the Corporate Bank sector.

Investment banking includes origination and consulting services, as well as fixed-income currency sales and trading. Private Bank Germany, private and commercial business abroad, and wealth management business divisions compose the Private Bank section. With the DWS brand, the Asset Management business offers investment products to individual clients and institutions. The Capital Release Unit section is responsible for stock sales and trading. The Corporate and Other sector comprises centrally controlled income, expenses, and resources.

Earlier this month, the Deutsche Bank-backed Taurus, which provides custody, tokenization, and trading of digital assets, announced a partnership with the Ethereum scaling network Polygon, as tokenization of real-world assets gained popularity among financial institutions and huge corporations.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News