Deutsche Bank is the latest investment bank to announce its entry into the crypto custody market.
According to a Bloomberg report, the German bank has applied for regulatory approval to operate a custody service for digital assets, including cryptocurrencies.
David Lynne, who leads the bank’s commercial banking division, stated, “We’re building out our digital assets and custody business,” during a conference. He noted that the bank has submitted an application to Bafin for a digital asset license.
This move aligns with a trend among global custodians seeking to establish digital asset servicing in Germany and across Europe. Bafin has previously granted licenses to crypto-native custodians, such as BitPanda, which received its approval last November.
The crypto custody market has gained heightened focus, particularly following the FTX collapse last year, which underscored the necessity of a clear separation between customer and company assets—a fundamental principle of traditional custody services.