To spur its income base, Deutsche Bank AG wants to enter the crypto space by deploying a custody service.
According to Bloomberg, Deutsche Bank has applied to Bafin, Germany’s financial and securities regulatory authority, for a custody service license in the digital asset sector as it eyes expanding its revenue scope.
Suppose the wish by the Frankfurt-based global financial and investment bank is granted. In that case, Deutsche sees it as a stepping stone towards tapping earnings from the cryptocurrency sector, according to the bank’s global head of corporate banking David Lynne.
He said, “We’re building out our digital assets and custody business.”
With a customer base spread across 74 countries, Deutsche Bank has previously been in high gear to render crypto offerings through its investment unit, the DWS Group.
The bank had hinted about rolling out a crypto custody service in late 2020 through its corporate divisions, but the specific time remained scanty.
Crypto Applications Continue to Gather Momentum
In the last week, Deutsche Bank’s custody application is not the only one making airwaves in the crypto sector because the biggest asset manager in the world, BlackRock, recently applied for a Bitcoin exchange-traded fund (ETF).
BlackRock’s Bitcoin ETF application seeks to enhance investments in the crypto industry. Notably, Bitcoin ETFs enable institutional and retail investors to access cryptocurrencies without directly owning them.
BlackRock’s intention has also caught the attention of multinational financial firm Fidelity Investments because it wants to follow suit.
A crypto enthusiast under the name Andrew took to Twitter and noted: “Sources expect Fidelity to either make a bid for Grayscale or quickly launch their own spot Bitcoin ETF.”
Filing for a Bitcoin ETF has not been that rosy on American soil because the Chamber of Digital Commerce revealed in September 2022 that the refusal by the United States Securities and Exchange Commission (SEC) to approve sixteen such applications was politically instigated, The Crypto Basic previously reported.