Deutsche Bank to Launch Institutional Crypto Custody Service by Year-End, Supporting BTC and ETH

Germany's largest bank, Deutsche Bank, announced it will launch a cryptocurrency custody service for institutional and corporate clients by the end of this year. According to Bloomberg, the bank stated that once regulatory procedures are finalized, it will begin offering custody services to institutional customers, with initial availability in Germany.

Institutional clients can store or transfer Bitcoin (BTC), Ethereum (ETH), and certain stablecoins through Deutsche Bank. Supported stablecoins include dollar-based Circle's USDC and euro-based EURC and EURUA. The bank manages wallets and private keys on behalf of clients, eliminating the need for customers to build their own custody infrastructure. Services will include hardware-based key protection, multi-signature approval processes, cold and hot wallet systems, and backup mechanisms.

Initial target clients include asset managers, hedge funds, custodians, and sovereign wealth funds. Deutsche Bank also views general enterprises and digital asset companies looking to use crypto for investment or payments as potential future customers. The bank plans to gradually expand supported assets based on client demand and risk management procedures, with tokenized financial products' custody included in its future business roadmap.

Deutsche Bank expects the custody business may take several years to become profitable, but aims to expand revenue streams by combining additional services. Gerald Podobnik, co-head of Deutsche Bank's corporate division, stated: 'Digital assets are not meant to replace traditional financial systems but serve as an important complement. They can coexist with existing market infrastructure based on the trust, security, and protection mechanisms provided by regulated financial institutions.'