Germany’s Deutsche Bank AG is shifting its focus to the digital assets sector and is seeking approval to operate as a crypto custodian in Germany. The bank aims to offer its users the ability to purchase and sell crypto assets through authenticated brokers, ensuring compliance with Germany’s crypto tax regulations and protecting investors from scams posed by fraudulent crypto brokers.
Once Deutsche Bank obtains the necessary permits, it plans to launch its crypto custody platform in stages. Services such as crypto staking, valuation, and fund administration will also be introduced to the bank’s customers in the future.
A spokesperson for Deutsche Bank confirmed that they have applied for a crypto custody license from BaFin, the Federal Financial Supervisory Authority of Germany. The service will be available to both individual and institutional investors.
This development is significant for the crypto sector as it brings support from a major bank with a valuation of approximately $1.42 trillion. The involvement of fintech companies in the digital assets sector has been increasing, with BlackRock recently filing to run a Bitcoin exchange-traded fund (ETF).
These developments have contributed to the recent surge in the crypto sector. As of June 21, the crypto sector’s valuation stands at $1.13 trillion, with a 5.15 percent increase in the last 24 hours. Bitcoin also reached a six-week high, trading at over $28,670.
The timing of Deutsche Bank’s license approval remains uncertain. The bank’s asset management group, DWS, previously announced a partnership with Galaxy Digital to offer exchange-traded products (ETPs) for digital assets.
Industry insiders are optimistic that the growing involvement of institutional investors in crypto-related activities could lead to a bullish market in the near future.