Deutsche Bank is looking to get more involved in the world of cryptocurrencies
German investment bank Deutsche Bank AG is the latest large financial institution looking to get more involved in cryptocurrencies and has applied with BaFin, Germany’s financial regulator, seeking permission to operate a custody service for digital assets.
According to a report from Bloomberg, David Lynne, Deutsche Bank’s Head of Corporate Bank, announced the firm’s move towards crypto on Tuesday, saying, “We’re building out our digital assets and custody business. We just applied to the BaFin for the digital asset license.”
BaFin is tasked with monitoring companies in Germany that provide services related to crypto assets, including crypto trading platforms, crypto ATM operators, and companies offering crypto custody services. A license from BaFin allows crypto firms to advertise and provide services in the German market legally.
In April, Deutsche Bank entered into a strategic alliance with Galaxy Digital Holdings Ltd., Aiming to develop a comprehensive suite of exchange-traded products (ETPs) on certain digital assets in Europe. The strategic allies also plan subsequently to explore other digital asset solutions.
As the digital asset market continues to mature, Galaxy’s asset management unit and DWS will work together to provide European investors access to the USD ~1 trillion digital assets market through cost-effective investment solutions that are easy to access via traditional brokerage accounts. This alliance is expected to significantly enhance Galaxy’s international distribution capabilities by deepening access to European investors keen to participate in the digital assets market. For DWS, this alliance is pivotal to developing comprehensive digital solutions and unlocking investor access to the ever-growing blockchain and digital assets universe. According to the press release, DWS will be Galaxy’s only ally for cryptocurrency ETPs in the European market.
“Galaxy’s mission is to empower investors across the globe with simple and secure access to the digital asset ecosystem through best-in-class education and institutional-grade products,” said Steve Kurz, Global Head of Asset Management at Galaxy. “By allying with DWS, one of the most successful and innovative asset management firms in the world, we are excited to enhance our ability to deliver comprehensive solutions to European investors, empowering them to tap into the vast potential and promise of blockchain technology and digital assets safely and conveniently.”
“This alliance brings together two firms with unparalleled collective experience in building and pioneering innovative investment solutions across both traditional and digital asset markets,” said Fiona Bassett, Global Head of Systematic Investment Solutions at DWS. “As we see increasing client interest in digital assets and the need for secure access, our shared education-first approach and commitment to providing clients with access via well-known and trusted investment vehicles will enable us to build thoughtfully constructed and thoroughly researched products. We look forward to working with Galaxy further to accelerate international adoption of the digital asset economy.”
What does the future hold for cryptocurrencies?
Technological advancements can, in the future, help the loss of all crypto portfolios that can happen right now due to a computer crash that wipes the information on it, including the crypto wallet. The other way it can help is from hackers who can wipe all your holdings immediately. Advancement also helps in making it easily accessible to everyone and making it more understanding and inclusive for all people.
Some businesses have accepted crypto as a form of payment which has increased its acceptance, more and more business acceptance will drive more people to use it, and with new technologies, it becomes easier to use the technology. Blockchain is not only used in cryptocurrency but also in insurance, fintech, and medical industries. More acceptance means more problems technology can solve in our daily lives. Governments have started creating their o cryptocurrency as a way to get into the technological revolution, and many regulations have come from many countries to control its use, giving it more legitimacy as a currency to be used by business and individuals.
More regulations will be seen and will fast-track the use of crypto in everyday activities. A part of having currency is its security, and cryptocurrency is very secure. Blockchain has never been hacked, and it is open source, showing its security level. The only way cryptocurrency can be hacked is by the companies in the ecosystem that has a vulnerability in their sites and with information linked that can be used to hack wallets. Still, generally, cryptocurrency is widely secured and can be used for a long time as currency for the future.
