Deutsche Bank applies for custody license for digital assets

Deutsche Bank sees a future in digital assets and has applied to the BaFin for a custody license.

With this move, the bank aims to enable the safekeeping of digital currencies through an in-house application. Whether cryptocurrencies will also fall under the definition of "digital assets" remains to be seen

According to David Lynne, head of commercial banking, Deutsche Bank aims to expand its digital assets and custody business with this move. The move is part of a broader strategy to increase revenue and innovation, Lynne said by Bloomberg. To what extent the planned custody solution will affect the bank's customers and whether BaFin will approve the license application remains to be seen.

The BaFin application is not Deutsche Bank's only attempt to tap into the digital asset market. In mid-February, the financial institution invested about US$65 million in digital asset platform Taurus. As part of a partnership with Memento Blockchain, Deutsche Bank is also previously working on a management solution for digital funds.

Meanwhile, Deutsche Bank's fund house, DWS Group, is working with US-based digital asset manager Galaxy Digital to launch crypto ETPs for investors in Europe.