Deutsche Bank Weeks Away From Launching Crypto Custody

Germany’s largest lender is weeks away from launching its first digital asset service as it expands into crypto custody.

Deutsche Bank plans to roll out the custody platform in Germany first and then expand it into Asian financial centers next year, Gerald Podobnik, co-head of the bank’s corporate bank, told Reuters.

Podobnik, a 23-year veteran of the lender, made the comments on the sidelines of the IMF and World Bank meetings in Bangkok.

He says the move forms part of the bank’s broader strategy to achieve compound annual growth of 8% in corporate banking by 2028.

Podobnik points to the rapid growth of the digital economy, including hundreds of billions of dollars held in stablecoins as evidence that new pools of value have emerged over the past two decades.

“I believe that, as the financial system, we will need to offer tokenised or blockchain solutions to our clients as additional services alongside our traditional ones … but not necessarily to replace what we are doing today.”

The phased rollout will initially support custody of major cryptocurrencies such as Bitcoin and Ether before expanding to services that help clients move money into and out of mainstream stablecoins.

Deutsche Bank says it will manage the wallets and private keys on clients’ behalf and support stablecoins or e-money tokens including USDC, EURC and EURAU at launch.

The initial target group includes corporates, asset managers, hedge funds, custodians, brokers and sovereign institutions, and the service is not intended for retail clients.

Deutsche Bank also plans to offer tokenized deposits and help clients issue blockchain-based securities such as digital bonds, according to Podobnik.