Deutsche Bank Seeks Approval for Digital Asset Custody Service in Europe

Deutsche Bank, Germany's largest financial institution, announced on September 16 its intention to launch a digital-asset custody service aimed at institutional and corporate clients throughout Europe. This initiative is currently awaiting regulatory approval from BaFin, Germany’s federal financial supervisory authority, under the EU’s Markets in Crypto-Assets Regulation framework.

The custody platform will enable institutional clients to securely hold and transfer a curated selection of digital assets, including Bitcoin, Ether, and three stablecoins: USDC, EURC, and EURAU. Security measures will feature hardware key protection, multi-person approval workflows, and segregated storage options.

The target clientele encompasses Deutsche Bank’s Corporate Bank and Investment Bank divisions, which include asset managers, hedge funds, custodians, brokers, and sovereign institutions. Gerald Podobnik, Co-Head of the Corporate Bank, described the initiative as an additive approach, emphasizing that digital assets are intended to complement rather than replace existing financial market infrastructure.

Deutsche Bank's application for a BaFin crypto custody license was submitted in 2023. The bank has partnered with Bitpanda, a Vienna-based digital asset platform, and Taurus, a Swiss digital asset infrastructure provider, to develop this service. With the full implementation of MiCA across the EU in late 2024, Deutsche Bank is poised to move forward, targeting a go-live date in late 2026, contingent on BaFin’s approval.