Deutsche Bank moves closer to launching its crypto custody service

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Deutsche Bank filed an application in June 2023 with BaFin, the German financial supervisor, to carry out cryptoasset custody activity. The same year, it partnered with Taurus, a Swiss provider of custody and tokenization solutions. This partnership gave the bank technical support to develop its offering for professional clients.

For an asset manager or a company, the interest of such a service is to delegate the management of private keys, which make it possible to authorize transfers. The curator must protect these keys and supervise the instructions received from the client. The ability to buy or sell cryptocurrencies is a separate service. The details of the functions accessible at Deutsche Bank remain to be confirmed.

Article 60 of the MiCA Regulation provides for a specific procedure for already authorized credit institutions. A bank that wishes to provide crypto-asset services must provide the required information to its competent authority at least 40 business days before offering them for the first time. This notification concerns the services that the establishment intends to provide.

In Germany, Commerzbank had already obtained custody approval in November 2023. For professional clients who compare these offers, the choice of custodian also depends on practical criteria, such as the assets it agrees to hold, the transfer procedures and the countries in which the service is accessible.

For managers who already hold cryptocurrencies, the advantage of a banking offer lies in the possibility of entrusting their custody to an establishment with which they already work. The usefulness of Deutsche Bank's service will depend on the assets supported and the conditions under which its clients can transfer them.

An editorial article. Le Journal du Coin, the first French-speaking news media on cryptocurrency, Bitcoin, and blockchain protocols.

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Machine-translated from French