Deutsche Bank takes another step into the world of blockchain by seeking a license to establish a crypto custody service. This move aligns with the bank’s goal of enabling users to securely store digital assets, including cryptocurrencies, similar to existing custody-based exchanges.
As we enter Q2 2023, numerous traditional institutions, like the $1.4 trillion German asset management institution, are increasingly intrigued by the digital economy and its connection to cryptocurrencies. Deutsche Bank aims to enhance its revenue from digital assets through its investment arm, the DWS Group.
David Lynne, Head of Corporate Bank, explained that the application to BaFin was submitted in order to develop the bank’s “digital assets and custody business.”
BaFin, which stands for Bundesanstalt für Finanzdienstleistungsaufsicht, is the Federal Financial Supervisory Authority in Germany. It serves as the primary regulatory authority responsible for supervising banks, financial service providers, insurance companies, and securities trading in Germany.
BaFin, established in 2002 through the merger of three supervisory authorities, aims to create a unified regulatory framework. Its key objectives include ensuring the stability and integrity of Germany’s financial system, protecting investors, and fostering confidence in the financial markets.
BaFin oversees various financial activities such as banking supervision, securities and capital markets regulation, insurance supervision, and enforcement of financial laws.