Deutsche Bank applies for a license to store cryptocurrencies

Deutsche-Bank

Deutsche Bank seeks a license for digital asset custody services.

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Amid the financial institution’s growing business, Deutsche Bank, the largest German bank, has filed an application for a license from the local regulator to offer custody services for digital assets, including cryptocurrencies. The application was filed with the Federal Financial Supervisory Authority (BaFin) on June 20, Bloomberg reported.

The filing of the application is part of a broader strategy to increase fee income in the bank’s corporate sector, according to the head of Deutsche Bank’s trade credit unit, David Lynn. It also reflects the efforts of DWS Group’s investment division to increase revenue from services related to digital assets.

“We are developing our business in the field of digital assets and custody,” Lynn added.

DWS Group representatives first reported plans to implement digital asset custody by the end of 2020. In September 2021, Deutsche Bank analyst Marion Laboure said that bitcoin could become the digital equivalent of gold. despite its volatility. In February 2022, she made a similar statement, adding that to increase the popularity of the asset among investors as a hedge, its official acceptance is needed.

Cryptocurrency regulation in Germany

In the first quarter of 2022, Germany ranked first in the international ranking of crypto-friendly countries. This was due to the decision to include cryptocurrency investments in the internal savings accumulation process. Singapore, the United States, Australia and Switzerland were also in the top five. In May, the government removed the tax on the sale of BTC and ETH stored for more than a year.

German law requires banks to obtain a license from BaFin to deal with cryptocurrencies. In March 2023, the regulator also allowed non-fungible tokens (NFTs) to be considered securities.