Deutsche Bank to Start Bitcoin and Ethereum Custody Within Weeks — Expansion to Asia by 2027

Deutsche Bank to Begin Bitcoin and Ethereum Custody

Deutsche Bank, Germany's largest financial institution, is expected to launch custody services for Bitcoin (BTC) and Ethereum (ETH) aimed at institutional investors and corporate clients within weeks in Germany.

Gerald Podobnik, co-head of the bank's corporate banking division, revealed the specifics of the plan during the IMF (International Monetary Fund) and World Bank meeting held in Bangkok.

Robust Asset Management Infrastructure to Meet Institutional Investor Needs

The custody services being offered will reduce the risks associated with institutional investors, such as asset management firms and hedge funds, managing their own private keys and wallets, and will create an environment where they can safely hold crypto assets through existing trusted financial infrastructure.

On the technical side, the bank is collaborating with Taurus, a Swiss crypto asset infrastructure company in which it led an investment in 2023. The service will implement offline management (cold storage), multi-signature approval processes, and robust security through hardware.

In the initial phase, in addition to Bitcoin and Ethereum, the handling of major stablecoins such as USD Coin (USDC) and EURC is also planned.

Expansion into Asia and Growth Strategy Towards 2028

Following the domestic rollout, Deutsche Bank plans to gradually expand these services to major financial hubs in Asia, including Singapore and Hong Kong, by 2027.

Building on its existing corporate banking operations in the Asian region, the bank intends to proceed with the rollout in accordance with the approval processes of local regulatory authorities.

The strengthening of this crypto asset business is positioned as a crucial element supporting the bank's medium-term growth target of achieving an annual revenue growth of 8% in its corporate banking division by 2028.

Expanding into Stablecoin Cashing and Deposit Tokenization

The bank's blockchain strategy goes beyond merely holding crypto assets. In the future, it plans to provide functionalities for the mutual conversion of fiat currencies and stablecoins, as well as gradual expansions into deposit tokenization and support for the issuance of digital bonds (securities) utilizing blockchain technology.

These solutions leveraging new technologies are seen not as replacements for traditional banking services but as complementary functions that enhance the efficiency of corporate fund transfers, payments, and financing processes.

Accelerating Competition from Global Financial Giants

Currently, global financial giants such as BNY Mellon, Citigroup, and Standard Chartered Bank are also entering the crypto asset custody and tokenization business.

With the advancement of global regulatory frameworks, including MiCA (Markets in Crypto-Assets), the provision of digital asset infrastructure by banks is becoming a global trend. Deutsche Bank's full-scale entry is likely to further accelerate the adoption of crypto assets among institutional investors.

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