Deutsche Bank Wants to Enter Cryptocurrency Market: Applies for Digital Asset Custody License

Deutsche Bank AG DB has reportedly submitted a regulatory application to operate a custody service for digital assets, including cryptocurrencies. 

David Lynne, the head of the bank's commercial banking unit, shared this information during a conference.

"We're building out our digital assets and custody business," David Lynne, who runs the lender's commercial banking unit, said at a conference Tuesday. "We just put our application into the Bafin for the digital asset license," he said, referring to Germany's securities regulator.

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This move aims to enhance fee income within Deutsche Bank's corporate bank, Bloomberg reported.

This initiative aligns with similar endeavors by Deutsche Bank's investment arm, DWS Group, to expand income opportunities associated with digital assets. 

While Deutsche Bank's corporate bank division had previously hinted at introducing digital asset custody in late 2020, no specific timeline was provided. 

Stefan Hoops was in charge of the division then, and David Lynne took over his position approximately a year ago when Hoops assumed the role of CEO at DWS.

Deutsche Bank's CFO estimated a 15%-20% decline in Q2 2023 fixed-income trading revenue at a conference in Paris. He expects investment bank division revenue to decline by 15% or a little worse Y/Y in Q2.

Price Action: DB shares are down 1.82% at $10.23 during the premarket session on the last check Tuesday.