Investment bank Deutsche Bank AG has recently applied to offer cryptocurrency custody services in Germany, according to a Bloomberg report released on June 20. During a conference, David Lynne, the head of Deutsche Bank’s commercial banking unit, confirmed the submission of the bank’s application for a digital asset license to BaFin, Germany’s primary financial regulator. The move is seen as part of the bank’s broader strategy to enhance its fee income. Additionally, the initiative aims to support the revenue generation efforts of DWS, the bank’s subsidiary asset management firm, through digital asset-related offerings. At the time of the report, Deutsche Bank had not responded to a request for comment from CryptoSlate.
Deutsche Bank, the largest bank in Germany and the ninth-largest in Europe, manages approximately $1.3 trillion in assets, as per S&P Global data.
The news of Deutsche Bank’s application has been well-received by the cryptocurrency community, with commentators noting the growing interest of traditional financial institutions in the crypto space. Michaël van de Poppe, a crypto trader and CEO of MN Trading, compared the current situation to the early days of the internet, suggesting that institutional involvement in crypto could lead to a significant upward trend for Bitcoin and other cryptocurrencies.
In recent times, various traditional financial institutions, such as BlackRock, have sought approval for a Bitcoin exchange-traded fund (ETF). Furthermore, there have been rumors about Fidelity considering a similar application. These institutions have also been actively investing in the crypto industry, supporting ventures like the newly launched EDX Markets and expressing interest in other activities within the digital asset space.