With a desire to provide high-touch services to hedge funds investing in the asset class, Deutsche Bank joined the ranks of major financial institutions exploring the cryptocurrency custody system.
Store a digital asset
The Deutsche Bank Digital Asset Custody prototype aims to develop “a fully integrated custody platform for corporate customers and digital assets that provides seamless connectivity to the wider cryptocurrency ecosystem,” according to a report barely noticed by the host World Economic Forum each year.
In an embedded pargraph on page 23 of the December 2020 report, Germany’s largest bank says it plans to create a trading and token issuance platform that combines digital assets with traditional banking services and manages digital assets and fiat assets in one easy way.
Crypto money storage service
With the world’s largest custody bank, Bank of New York Mellon, the major banks that joined the party earlier this week are now announcing their plans to enter crypto custody on an almost daily basis.
Thanks to the comment letters received from the Currency Supervisory Office last year, some regulations have been clarified for US banks. Firms in Germany are lining up to obtain special crypto storage licenses from the country’s regulator, BaFIN.
Deutsche, the 21st largest bank in the world, said that it aims to “ensure the security and availability of assets for customers by providing an enterprise-level hot / cold wallet solution with insurance class protection”. There is no mention of a specific cryptocurrency or token.
The bank said the service will be aimed at asset managers, family offices, companies and digital funds.
In terms of a business model, the bank said it would start collecting custody fees, later charging fees for tokenization and trading.