• Deutsche Bank AG, a multinational investment bank valued at $1.4 trillion, is applying for a crypto custody license in Germany.
• The application has been submitted to the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the main German financial regulator.
• This comes as part of Deutsche Bank’s wider strategy to expand income from digital assets offerings.
Deutsche Bank Applies for Cryptocurrency Custody License in Germany
Deutsche Bank AG, Germany’s largest and the European Union’s second-largest bank valued at $1.4 trillion, is seeking regulatory approval to offer a custody service for digital assets, including cryptocurrencies, in Germany. The application has been submitted to the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the main German financial regulator.
Objective of Applying for Crypto Custody License
The objective behind this move is to provide a more efficient and safe network for managing and accessing digital assets as per David Lynne, runner of Deutsche Bank AG’s commercial unit. It also forms part of Deutsche Bank’s wider strategy to increase fee income from digital assets offerings at both its corporate banking and investment arm DWS Group.
Project DAMA: Digital Asset Management Access
Earlier this year, Deutsche Bank completed a new proof of concept in collaboration with the Memento blockchain called Project DAMA (Digital Asset Management Access). This project is aimed at providing a more efficient and secure network for managing and accessing digital assets which reflect Deutsche Bank’s intent towards cryptocurrencies and other digital assets.
Previous Criticism Towards Cryptocurrencies
Even though previously being critical of digital assets such as cryptocurrencies, it appears that Deutsche Bank has shifted its stance on these emerging asset classes with this recent move. This strengthens their position as potentially being one of the first movers in this sector should they be able to obtain BaFin approval under their newly applied license.
This application by Deutsche Bank shows how large financial institutions are increasingly looking towards leveraging blockchain technology within their operations which could potentially have huge implications on the future mainstream adoption of cryptocurrency across Europe especially with Bavaria recently passing regulations that recognize blockchain-based securities as legitimate investments instruments within its jurisdiction .