Deutsche Bank seeks digital asset license in Germany as traditional finance ventures deeper into cryptocurrency.

The banking company Deutsche Bank AG has applied for regulatory permission to act as a custodian for cryptocurrencies in Germany, as announced on Tuesday. This move came just days after the asset management company BlackRock filed with the SEC to create a spot bitcoin ETF.

“I can confirm that we applied for the BaFin license for crypto custody,” stated a Deutsche Bank spokesperson, referring to Germany’s financial regulator.

The bank had announced in February 2021 that it was exploring cryptocurrency custody in order to offer an “institutional-grade hot/cold storage solution with insurance-grade protection.”

Deutsche Bank plans to launch a digital asset custody platform in stages, which will eventually allow users to buy and sell digital assets through prime brokers and even provide services such as taxation, valuation services, fund administration, lending, staking and voting, and more.

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The bank has been active in the cryptocurrency space for a while. Recently, the bank’s asset management group, DWS, reportedly entered into negotiations to acquire a minority stake in two cryptocurrency companies – Deutsche Digital Assets, a provider of exchange-traded products, and trading firm Tradias.

During a conference on Tuesday, David Lynn, who runs Deutsche Bank’s commercial banking unit, reported that the bank is now “building out [its] digital asset and custody business,” according to Bloomberg.

In February, DWS CEO Stefan Hoops said that the current low cryptocurrency prices could create “interesting opportunities” for the asset management division.

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