Deutsche Bank AG has recently submitted an application for a digital assets license to Germany’s financial regulator, BaFin.
This move marks the bank’s intention to venture into the realm of cryptocurrencies and operate a custody service for digital assets.
During a conference on Tuesday, David Lynne, the head of Deutsche Bank’s commercial banking unit, confirmed the submission of the application, as reported by Bloomberg.Â
Lynne expressed the bank’s commitment to expanding its digital assets and custody business, highlighting the application to BaFin for the digital asset license.
Deutsche Bank’s strategic decision to pursue a digital assets license aligns with its broader objective of increasing fee income. This initiative is in line with similar efforts focused on digital assets within its investment arm, DWS Group, according to Lynne.
Interestingly, Deutsche Bank’s interest in digital asset custody emerged in late 2020, which contrasts with its earlier research reports from that year. In those reports, the bank deemed Bitcoin as “too volatile” to be considered a “reliable” store of value.
The bank’s evolving stance signifies a growing recognition of the potential value and opportunities associated with digital assets.
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By securing the digital assets license, Deutsche Bank aims to position itself as a trusted custodian for cryptocurrencies and other digital assets.
