• Deutsche Bank, one of the world’s largest and second-largest banks in Europe, is applying for a crypto custody license in Germany.
• The bank’s commercial unit is building out its digital assets and custody business with an application to the BaFin (Federal Financial Supervisory Authority).
• Earlier this year, the bank completed a new proof of concept in collaboration with the Memento blockchain called Project DAMA.

Deutsche Bank Applies for Cryptocurrency Custody License

Deutsche Bank AG, valued at $1.4 trillion and Germany’s largest and the European Union’s second-largest bank, has applied for a crypto custody license in Germany. The application was submitted to the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), or Federal Financial Supervisory Authority – the main German financial regulator responsible for supervising banks, insurance companies, and financial markets.

Building Out Digital Assets And Custody Business

David Lynne, head of Deutsche Bank AG’s commercial unit, stated that they are “building out our digital assets and custody business” by submitting their application to BaFin for a digital asset license. It is part of a wider strategy at both their investment arm DWS Group as well as their corporate bank to increase fee income from these offerings.

Proof Of Concept With Memento Blockchain

Earlier this year, Deutsche Bank completed a new proof of concept in collaboration with the Memento blockchain called Project DAMA (Digital Asset Management Access). It aims to provide a more efficient and safe network for managing and accessing digital assets such as cryptocurrencies.

Critical Of Digital Assets In The Past

Despite being critical of digital assets in the past, Deutsche Bank seems to be taking steps towards getting ahead in this industry by attempting to obtain this first mover advantage.

Conclusion

If successful in obtaining regulatory approval from BaFin , Deutsche Bank will be able to offer a secure custodial service for cryptocurrencies as well as other digital assets. This could potentially open up opportunities within institutional finance which could further drive growth within cryptocurrency markets across Europe.