Deutsche Bank is a multinational bank operating in several regions of the world, but its headquarters are in the German city of Frankfurt.
Deutsche Bank is quietly planning to enter the crypto market as the bank’s game plan was hidden in plain sight.
Deutsche Bank joined the growing ranks of large financial institutions exploring the era of cryptocurrencies, with aspirations to provide high-quality services to hedge funds that invest in the cryptocurrency category.
The Deutsche Bank prototype aims to develop an integrated custodian and storage platform for institutional customers and their digital currencies.
In the Deutsche Bank report, and exactly in a paragraph on page 23 of the December 2020 report, the largest bank in Germany says that it plans to create a digital trading and issuance platform, link digital assets with traditional banking services, and manage digital currency and paper holdings in one easy-to-use platform.
Major banks are now announcing plans to enter the cryptocurrency market on an almost daily basis.
As we mentioned earlier in Arab Bitcoin about the joining of New York Mellon, the largest custodian bank in the world, to the stream of upcoming institutions supporting digital currencies.
US banks gained some regulatory clarity thanks to letters of explanation last year from the Office of the Currency Comptroller.
In Germany, companies are queuing to obtain licenses to store cryptocurrencies from the state regulatory agency “BaFIN”.
Speakers for Deutsche Bank, which ranks 21st as the world’s largest bank, said it aims to ensure asset integrity and accessibility to customers by offering an enterprise-grade hot / cold storage solution with insurance-level protection.
No cryptocurrency was mentioned in the report and the statements made by the bank.
The digital asset preservation platform will be launched in stages.
Ultimately, the bank will provide clients with the ability to buy and sell digital currencies through a partnership with prime brokers (who act somewhat like a gatekeeper to hedge funds), issuers, and exchanges that have been vetted and verified.
The bank says it will also offer value-added services such as tax, valuation services, fund management, lending, risk-taking and voting, and provide an open banking platform to allow entry of third-party providers.
The bank said the service targets asset managers, wealth managers, family offices, businesses and digital funds.
Regarding the profit model, he told the bank that it would start charging custody fees, and subsequently charging fees for storing and trading digital currencies.
He also told Deutsche Bank that it has completed the proof-of-concept process and is currently aiming to have a minimum viable product in 2021, while exploring global customer interest in a pilot initiative.