This change is part of the bank’s larger goal to boost fee revenue for its corporate division.
Deutsche firm’s latest action comes after the firm had a severe liquidity problem in March.
Deutsche Bank AG, the biggest bank in Germany, has just submitted an application to the appropriate authorities to begin providing custody services for digital assets like cryptocurrencies.
This change, according to Deutsche Bank’s head of commercial banking, David Lynne, is part of the bank’s larger goal to boost fee revenue for its corporate division. It also draws attention to the bank’s initiatives to boost revenue for its investment arm DWS Group via the sale of digital assets and their related services.
Need for Regulated Custodial Solutions
Deutsche Bank has already made efforts to provide custodial services for digital assets. It made a similar effort in 2020, but it has not yet been revealed when the services would go live.
There will be a greater need for regulated custodial solutions providers as the number of institutional players in the cryptocurrency market grows. Deutsche Bank’s approach comes as other major financial institutions, such as BlackRock and Fidelity, have signaled their own intentions to enter the cryptocurrency market.
Deutsche firm’s latest action comes after the firm had a severe liquidity problem in March when Credit Suisse collapsed. The German financial powerhouse, however, seems to be on firm ground after this storm.
Moreover, German authorities are also trying to loosen restrictions on crypto staking and lending regulations. The implementation of MiCA rules will also simplify regulatory advancements. Germans’ interest in and use of cryptocurrencies has been rising, and it will accelerate as the country’s regulatory landscape becomes more transparent. Amid the rising crackdown of U.S SEC on the crypto sector, other nations are taking cautious steps toward the sector.