BaFin Approves Deutsche Bank Custody License for Digital Assets

Deutsche Bank Requests Digital Asset Custody Permit

Deutsche Bank, Germany’s biggest banking company, has apparently requested a digital asset custody permit from the Federal Financial Supervisory Authority (BaFin) of the nation, as per Bloomberg, in an attempt to broaden its income sources.

The move follows a similar one from DWS Group, the bank’s investment arm, and is intended to broaden its digital asset custody services, including those related to cryptocurrencies. DWS Group had previously expressed an interest in investing in two German crypto companies. Among the firms in negotiations with DWS Group were Deutsche Digital Assets, a provider of crypto exchange-traded products, and market maker Tradias.

Deutsche Bank’s corporate banking division initially unveiled their intent to provide services related to digital assets last year, though they had not specified a timeline for when they would be available. On June 20th, David Lynne, head of the lender’s commercial banking sector, declared that the bank is constructing a “digital assets and custody business,” and has applied for a license with the financial regulator of the nation, as reported by Bloomberg.

In spite of its past criticism of Bitcoin (BTC) and the crypto market’s instability, Deutsche Bank’s attitude towards the sector has changed in 2023. In February, Deutsche Bank Singapore, in collaboration with Memento Blockchain, successfully trialed a tokenized investment platform known as Project DAMA (Digital Assets Management Access).

The digital asset fund was established with its own exclusive token and provided a direct fiat-to-digital access point for users.

Germany’s Banking Sector Shifting Attitude Towards Crypto Industry

A report indicates that almost half of Germans are looking to invest in cryptocurrency.

Deutsche WertpapierService Bank, a German securities processor, has also developed a Bitcoin-oriented platform named wpNex for retail customers. This new platform provides crypto accounts to bank customers in addition to their other accounts without necessitating them to go through any extra Know Your Customer procedures.

Germany’s banking sector had been keeping its distance from the crypto industry due to its volatility and lack of predictability; however, that attitude appears to be shifting in 2023 as major banks continue to investigate the possibility of providing clients with digital asset-related services.

Magazine: Ranking of the best and worst countries for cryptocurrency taxes, as well as advice for crypto taxation.