Deutsche Bank, Germany's top bank, is set to roll out a crypto custody service in the coming weeks, a major step to deepen the company's presence in the world of digital assets.
It plans to start by providing custody services for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). The company will later expand its digital asset offerings,
Gerald Podobnik, co-head of the corporate banking division at Deutsche Bank, announced the company's plans at the International Monetary Fund and World Bank meetings in Bangkok.
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The new custody service will first be rolled out in Germany. The bank plans to expand its presence in key financial centers across Asia by 2027.
The bank also has plans to offer services that will enable its clients to convert fiat to stablecoins and vice versa.
The custody service is mainly targeted at institutions and corporate entities and not individual crypto investors.
As per the bank's earlier announcement, the company will help manage crypto wallets and private keys on behalf of its clients so they do not have to set up their own custody.
The bank had mentioned some stablecoins like USDC and EURC as part of the assets it plans to offer custody for when the service is launched. The fiat-to-stablecoin conversion services will come later.
Deutsche Bank is doubling down on blockchain
Deutsche Bank is also working to roll out tokenized deposits and help corporate clients issue securities such as digital bonds on the blockchain.
Tokenized deposits are simply traditional bank deposits on a blockchain. This could help financial institutions move and settle funds using blockchain technology.
On the other hand, issuing bonds on a blockchain can simplify the process of issuing and settling debt securities.
Podobnik also said the bank believes blockchain-based financial products will be a complement to the bank's existing infrastructure and not a substitute for traditional financial services.
This move is part of Deutsche Bank's corporate banking strategy. They aim to see an 8% compound annual revenue increase until 2028.