Deutsche Bank Set to Launch Digital Asset Custody in Europe

Deutsche Bank plans to launch a digital asset custody service for institutional and corporate clients in Europe this year, subject to regulatory approval.

Clients will be able to safeguard digital assets and transfer them to third parties, with Deutsche Bank managing the underlying wallets and private keys on their behalf.

At launch, the bank will support Bitcoin, Ether and selected stablecoins and e-money tokens, including USDC, EURC and EURAU.

The range of supported assets may expand over time, depending on client demand and its own product-approval, risk-management and regulatory processes.

Deutsche Bank built the platform around several layers of security and operational control, including hardware-based key generation and protection, segregation of duties, multi-person approval, separate warm and cold storage, a redundant technical setup and backup and recovery arrangements.

Select external technology providers will support specific technical components.

“We see them as new rails that can coexist with existing market infrastructures while benefiting from the trust, security and safeguards that regulated financial institutions provide,”

said Gerald Podobnik, Co-Head of Corporate Bank, Deutsche Bank.

The service will initially target clients of Deutsche Bank’s Corporate Bank and Investment Bank, including corporates, asset managers, hedge funds, custodians, brokers and sovereign institutions.

Onboarding will depend on the bank’s criteria, due-diligence requirements and risk appetite.

Deutsche Bank said the timing, availability, supported assets and scope of the service could still change.

Digital assets carry risks including price volatility, fraud and cyber incidents, and crypto-assets are not covered by a deposit-guarantee scheme comparable to protections for eligible bank deposits.

Featured image: Edited by Fintech News Switzerland, based on image by starmultikharisma via Magnific.

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