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German investment bank Deutsche Bank has applied to Germany’s financial regulator to provide custody services for cryptocurrencies.
“I can confirm that Deutsche Bank has applied to BaFin for a license for crypto custody,” a spokesperson for the bank told Blockworks via email on Tuesday.
Bloomberg first reported the development, citing Deutsche Bank’s global head of corporate bank, David Lynne.
Lynne reportedly said the bank is growing its digital assets and custody business. BaFin declined to comment.
Deutsche’s application to BaFin is seen as part of a broader strategy to boost fee revenue for its corporate bank unit. This move aligns with its subsidiary asset management firm DWS’s efforts to expand income through offerings related to digital assets.
In February, DWS was reportedly considering investments in two German crypto companies to boost growth. The companies were Deutsche Digital Assets, which offers crypto exchange-traded products, and Tradias, a market-making firm.
BaFin keeps an eye on companies in Germany that provide services related to crypto assets, including crypto trading platforms, crypto ATM operators and companies offering crypto custody services.
Obtaining a BaFin license allows crypto companies to confidently advertise and offer their services in the German market.
The regulator has already granted crypto custody licenses to several companies, including a unit of Germany’s Boerse Stuttgart stock exchange, Berlin-based Finoa and well-known crypto exchange Bitpanda.
In Feb. 2022, BaFin cautioned about the speculative nature and risks of investing in crypto assets. It advised against relying on investment recommendations found on social media, as they can be unreliable or misleading.
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