Deutsche Bank, the biggest bank in Germany in terms of total assets, is said to have requested regulatory authorization to venture into the role of a cryptocurrency custodian.
“We’re building out our digital assets and custody business,” David Lynne, who runs the lender’s commercial banking unit, said at a conference Tuesday. “We just put our application into the Bafin for the digital asset license,” he said, referring to Germany’s securities watchdog.
According to Lynne, this initiative is a component of Deutsche Bank’s broader strategy to enhance fee income within its corporate bank. Additionally, it aligns with similar endeavors pursued by DWS Group, the bank’s investment arm, aimed at expanding revenue through products and services associated with digital assets.
Deutsche Bank’s corporate bank divisions initially indicated their intentions to introduce digital asset custody towards the end of 2020, although they did not provide a specific timeline for the service’s launch. At that time, Stefan Hoops was leading the division, but about a year ago, Lynne assumed the role when Hoops became the CEO of DWS.