One of Germany’s largest banks, Deutsche Bank, with headquarters in Frankfurt, has submitted a license application to the country’s regulatory authority, Bafin, to provide custody services for digital assets, including cryptocurrencies.
“We Have Applied to Bafin”
David Lynne, who heads Deutsche Bank’s corporate banking division, stated during a conference held today, “We are developing our digital asset and custody business.” Referencing Germany’s securities regulatory and supervisory authority, he added, “We have just applied to Bafin for a digital asset custody license.” Lynne also mentioned that this move is part of a broader strategy to increase fee revenues within Deutsche Bank’s corporate segment.
Deutsche Bank’s corporate banking unit first announced its plans to offer digital asset custody services specifically for cryptocurrencies at the end of 2020. However, no specific date for the launch of these services was given at the time. The unit was then under the leadership of Stefan Hoops, who left his position to Lynne after becoming the bank’s executive board chairman. With the onset of Lynne’s term, it appears that the bank is accelerating its plans to offer digital asset custody services.
Big Players Flocking to the Crypto Market
Following the shocking news of lawsuits by the U.S. Securities and Exchange Commission (SEC) against major platforms like Binance and Coinbase, and the classification of leading altcoins like Cardano (ADA), Solana (SOL), and Polygon (MATIC) as securities, the cryptocurrency market bounced back. The market reversed its downward trend after BlackRock, the world’s largest asset manager, filed for a spot Bitcoin ETF in the U.S., causing Bitcoin to rise from below $25,000.
According to market analysts and observers, Deutsche Bank’s formal regulatory license application to provide custody services for digital assets, specifically cryptocurrencies, could potentially serve as an additional catalyst for the market’s recovery.
Very good