Deutsche Bank, the €732 billion German lender that serves 28 million clients, is weeks away from launching a Bitcoin custody service, according to a Reuters report on Friday, with Germany first in line and an expansion into Asia planned for next year.
Gerald Podobnik, co-head of the bank’s corporate bank, told Reuters that the financial system will need to “offer tokenized or blockchain solutions,” as the bank moves closer to putting its first digital asset service into production. The service will begin with custody of major digital assets, including Bitcoin, and later extend to services that help clients move money into and out of stablecoins.
What is launching
Deutsche Bank first announced the plan on September 16. It said the custody service would cover Bitcoin and Ether, along with selected stablecoins and e-money tokens. Under the model described, the bank holds the private keys and manages wallet security on the client’s behalf, so customers can hold digital assets and move them to third parties without building their own custody infrastructure.
Who it is for
The first clients will be corporate and institutional customers in Europe, served through the bank’s corporate and investment banking arms. That includes asset managers, hedge funds, brokers, custodians, corporates and sovereign institutions. Reporting to date does not describe a retail offering.
Timing and approvals
The launch is described as “weeks away,” but it remains subject to regulatory approval. In September the bank said it would go live once the applicable regulatory process is complete. Reuters reported that the bank also plans to bring the platform to Asia next year.
Why it matters
Deutsche Bank joins a growing list of large financial institutions that are building direct custody for Bitcoin. According to Bitcoin Magazine, BNY Mellon, State Street, Standard Chartered, U.S. Bank and Citigroup have all committed to direct digital asset custody over the past 18 months. For Bitcoin, the signal is less about any single launch and more about the direction: the institutions that hold assets for pension funds, corporates and sovereign investors are putting the plumbing in place to hold Bitcoin too.
Market context
Bitcoin was trading near $81,100 on Friday, down about 1.2% over the previous 24 hours.
This article is for general information only and is not investment advice. Digital assets are volatile. Do your own research.