As many more institutions have gathered in the crypto space, the biggest bank in Germany, Deutsche Bank appears to have hopped into the institutional crypto exploring train. The bank is set to commence crypto custodial services. Perhaps in the nearest future it may offer other bespoke services to hedge funds that invest in crypto.
The World Economic Forum notes that with the bank’s custodial services, it aims to birth “a fully integrated custody platform for institutional clients and their digital assets, providing seamless connectivity to the broader cryptocurrency ecosystem,”
The Bank’s December 23 Report states that the bank is also out to establish a “trading and token issuance” forum that will enable users scale digital assets via the existing conventional banking system and financial institutions. The whole idea is to have an easily accessible one-stop forum for digital products and other financial services.
This Deutsche Bank move into the crypto custodial sector comes after other banks like the Bank of New York Mellon’s announcement to venture into custodial services for Crypto. At the moment, financial institutions in Germany are all trying to obtain crypto custodial licenses from BaFIN, the country’s financial agency.
The Deutsche Bank has emphasized that it has this goal to “ensure the safety and accessibility of assets for clients by offering an institutional-grade hot/cold storage solution with insurance-grade protection.”
The bank continued:
“value-added services such as taxation, valuation services and fund administration, lending, staking and voting, and provide an open-banking platform to allow onboarding of third-party providers.”
It plans to offer these services to “fund managers, asset managers, corporate entities dealing in digital funds, wealth managers, and family offices” to mention a few.
As a way to make money from the custodial services venture, the 21st largest Bank in the world plans to earn fees from the crypto custodial services; moving from this to also charging fees on other aspects of crypto services it renders.
The bank is set to render these crypto custodial services before 2021 runs out and already has its plans to scale the services globally.
In the wake of governments like the Nigerian government outrightly disabling crypto in our community, what are your takes on the more pro-crypto moves by foreign financial institutions and governments? Let us hear it in the comment section below.