Deutsche Bank’s application for regulatory approval is a positive step towards the development of a regulatory framework for digital asset custody services in Germany.
Deutsche Bank AG (ETR: DBK), one of the world’s leading financial institutions, is seeking regulatory approval from Germany’s financial market regulator, BaFin, to operate a custody service for crypto assets, including cryptocurrencies. Interestingly, the move marks a significant step towards the entry of banks into the digital asset space, which has been gaining traction in recent years.
according to bloomberg reportsDavid Lin, head of Deutsche Bank’s commercial banking unit, mentioned the bank’s application during a conference call. According to the report, the custody service will allow Deutsche Bank to store and manage digital assets on behalf of its customers.
Digital assets, such as cryptocurrencies, are becoming increasingly popular as a store of value and means of payment. However, the lack of a secure and reliable custody solution has been a major stumbling block for institutional investors looking to enter the digital asset space.
As such, Deutsche Bank’s entry into the digital asset custody space will provide a much-needed solution for institutional investors who require a secure and reliable way to store and manage their digital assets. Meanwhile, the bank’s reputation for security and reliability makes it an ideal candidate to provide such a service, although the bank must adhere to strict regulatory requirements to ensure the safety of its customers’ digital assets.
Deutsche Bank steps into the crypto space
Undoubtedly, Deutsche Bank’s application for regulatory approval is also a positive step towards the development of a regulatory framework for digital asset custody services in Germany.
Recall that the Frankfurt-headquartered bank plans to enter the crypto industry from 2020, but never set a timeline. In February, its asset management arm decided to find out investment option As part of its growth strategy in two German-based crypto companies.
Notably, the bank’s entry into the digital asset space could encourage other financial institutions to follow suit, which could help legitimize the digital asset industry and boost its adoption.
In addition to Deutsche Bank, Bank of New York Mellon Corporation (NYSE: BK), the oldest bank in the US extended Its custody services for cryptocurrencies. Interestingly, BNY Mellon is the first bank to use a single platform to offer custody for both traditional and crypto holdings. This means that banks can now hold digital assets including Bitcoin (B T c), Ethereum (ETH), and prefer on behalf of their customers.
The move also showed health in Deutsche Bank’s business prospects. In the midst of a crisis that ravaged the industry earlier this year, German banks Posted Net profit of 1.158 billion euros, or $1.28 billion, in its Q1 2023 earnings report, which ended March 31, continued its 11th consecutive quarterly profit. Also, its first quarter revenue came in at 7.7 billion euros, up from 7.33 billion euros reported during the same period in 2022.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves to write about real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Bitcoin Crypto Related Post