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Deutsche Bank exploring cryptocurrency custody

After a slew of announcements by major financial institutions, Deutsche Bank, has joined the cryptocurrency custody bandwagon too.

Their Digital Asset Custody prototype aims to develop “a fully integrated custody platform for institutional clients and their digital assets providing seamless connectivity to the broader cryptocurrency ecosystem.”

The bank’s intends to create a trading and token issuance system. It’ll bring the digital assets closer to the traditional banking services. Also, it would create a management system for both the assets in one platform.

The bank plans to add Value-added services like taxation, valuation and fund administration, lending, staking and voting into the platform.

As for the business model, the bank would start out collecting custody fees, it said, later charging fees for tokenization and trading.

The launch of this platform will be in multiple stages and clients will soon be able to buy/sell digital assets. It’ll be carried out via partnership with prime brokers (which act sort of like concierges for hedge funds). According to the Bank, asset managers, wealth managers, family offices, corporates and digital funds would like to use this platform.

Deutsche stated that it has completed a proof of concept and is a minimum viable product would be available in 2021. They will also be exploring global client interest for a pilot initiative.

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