Germany’s Deutsche Bank AG is shifting its attention to the digital assets sector. The banking major is now seeking approval to operate as a crypto custodian in Germany. The banking mammoth aims to allow its users to purchase and sell crypto assets via credible and authenticated brokers. This would ensure that investors would not flout Germany’s crypto tax norms while also safeguarding investors from financial risks that scammers disguised as crypto brokers pose to them.
Once Deutsche Bank manages to secure all the necessary permits, it would segregate the launch of its crypto custody platform in different stages. Services related to crypto staking, valuation, and fund administration will also eventually be brought to the customers of the Frankfurt-headquartered bank.
“I can confirm that we applied for the BaFin license for crypto custody,” a report by CoinDesk quoted a bank spokesperson as confirming the development on June 20. BaFin, which stands for “Bundesanstalt für Finanzdienstleistungsaufsicht” in German, is the Federal Financial Supervisory Authority of Germany that is responsible for overseeing the country’s financial markets. The service will be extended to small scale individual investors, as well as large scale institutional investors.
This development marks for a major milestone for the crypto sector, because it brings the support of this large bank, the valuation of which is estimated to be around $1.42 trillion (roughly Rs. 1,16,53,641 crore), to the crypto sector. Recently, there has been a rise in the involvement of fintech majors in the digital assets sector.
Earlier this week, for instance, BlackRock filed to run a Bitcoin exchange-traded fund (ETF) that would allow investors to get exposure to the cryptocurrency despite the volatile asset class having been under intense regulatory scrutiny these past weeks.
These developments have contributed to the surge that the crypto sector has managed to record in these latest days.
As of Wednesday, June 21, the valuation of the crypto sector stands at $1.13 trillion (roughly Rs. 93,01,753 crore) with a 5.15 percent escalation in the last 24 hours. Bitcoin also scored its six-week high on Wednesday, with its trading value hovering over the mark of $28,670 (roughly Rs. 23.5 lakh).
Presently, it remains unclear when Deutsche Bank AG could get its licence from the German regulators. Previously, the bank’s asset management group, DWS had announced its partnership with US’ Galaxy Digital to bring exchange-traded products (ETPs) for digital assets.
Industry insiders, meanwhile, are hopeful that crypto-related activities brewing among institutional investors could result in a bull market situation in the coming days.