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Deutsche Bank applies for a license to offer Crypto Custody Service

Germany’s largest bank, Deutsche Bank, has reportedly applied for regulatory approval from the Federal Financial Supervisory Authority (BaFin) to offer custody services for digital assets, including cryptocurrencies, according to Bloomberg.

David Lynn, the head of Deutsche Bank’s Corporate Bank division, expressed their intention to expand their business in the realm of digital assets and custody. He mentioned that they have applied for a license for digital assets from BaFin.

This move is part of Deutsche Bank’s broader strategy to increase revenues in its Corporate Bank segment, and it aligns with similar efforts by DWS Group, the asset management unit of Deutsche Bank, to enhance revenues from digital asset offerings.

Deutsche Bank’s Corporate Bank unit announced its intention to offer custody services for digital assets at the beginning of 2020, without specifying a specific timeline for the service launch. Lynn took over the division’s leadership one year after Stefan Hoops and joined DWS as the CEO.

In Germany, BaFin is responsible for granting licenses to entities seeking to provide cryptocurrency services in the country. The new German anti-money laundering law, which came into effect in early 2020, allows financial institutions to offer crypto products to their customers alongside traditional investments such as stocks and bonds. BaFin has received over 40 expressions of interest from banks regarding approval to offer cryptocurrency custody services in the future.

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