Deutsche Bank Goes Live With Crypto Custody After a Five-Year Buildup
Deutsche Bank has launched a regulated digital asset custody service for institutional and corporate clients in Europe, enabling them to store Bitcoin, Ethereum, and stablecoins.
The bank manages wallets and private keys on clients’ behalf, using hardware-based key protection, multi-person approvals, and separate warm and cold storage.
The service is aimed at clients of Deutsche Bank’s corporate and investment banking units, including corporations, asset managers, hedge funds, custodians, brokers, and sovereign institutions.
Deutsche Bank also signed a memorandum of understanding with Deutsche Asset Management, the majority-owned money manager formerly known as DWS, to explore tokenized money market funds, crypto exchange-traded commodities, and stablecoins.
The asset manager oversaw about 1.22 trillion euros as of Sept. 30.
In the medium term we aim to deliver a fully integrated, regulated ecosystem that supports the custody, tokenisation, and settlement of digital assets.
Regulatory Approval and Expansion
The launch caps a long road, going back to at least 2021 when Deutsche Bank began readying a crypto custody and trading platform.
In 2023, the bank applied for a digital asset custody license in Germany, and last year reports said it planned to build the service with technology from crypto exchange Bitpanda, alongside its longtime partner Taurus.
Deutsche Bank received authorization from German regulator BaFin under the EU’s Markets in Crypto-Assets regulation, or MiCA, which requires crypto service providers to be licensed.
The bank cautioned that its custody service doesn’t protect clients against swings in the value of digital assets, fraud, or failures by other market participants.
Deutsche Bank also plans to expand the custody service to Asia.
Stablecoin Consortium
The custody launch isn’t Deutsche Bank’s only crypto bet. The bank is among a group of global lenders, including Goldman Sachs and Citi, backing a $270 million challenge to crypto’s dominant stablecoin issuers.
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