Deutsche Bank applies for digital asset custody license in Germany

Several crypto community members have highlighted the growing interest of traditional financial interest in crypto.

Investment bank Deutsche Bank AG has applied to provide cryptocurrency custody services in Germany, per a June 20 Bloomberg report.

Deutsche Bank’s head of commercial banking unit, David Lynne, reportedly confirmed the bank’s application during a conference on Tuesday, saying:

“We’re building out our digital assets and custody business. We just put our application into the BaFin for the digital asset license.”

BaFin is Germany’s top financial regulator.

According to Lynne, the bank is implementing this action as part of a broader strategy to enhance its fee income. Furthermore, this initiative supports the expansion endeavors of DWS, the subsidiary asset management firm, in generating revenue through digital asset-related offerings.

Deutsche Bank was yet to respond to CryptoSlate’s request for comment as of press time.

Deutsche Bank is the largest bank in Germany and the ninth-largest bank in Europe. The bank manages around $1.3 trillion in assets, according to S&P Global data.

Crypto community welcomes news

The crypto community has reacted positively to news of the bank’s application, with some commentators citing other traditional financial firms’ recent interest in crypto.

Crypto trader and CEO of MN Trading Michaël van de Poppe stated that the move shows that “we are at 1997-1998 of the internet.” Poppe added:

“Institutional is going to join, and we’ll have a mega cycle for Bitcoin and crypto.”

Over the past week, traditional financial institutions, like BlackRock, have applied for a spot Bitcoin ETF, while there are unconfirmed rumors that Fidelity was considering filing a similar application.

Additionally, these traditional institutions have continued to invest in the crypto industry, backing the newly launched EDX Markets and showing interest in other activities within the space.