Deutsche Bank plans to launch crypto custody services in Germany and then take them to Asian financial centres in 2027, Reuters reported on Friday.
The bank had not named which Asian centres it is targeting at the time of writing.
Why the bank is moving now
Gerald Podobnik, co-head of Deutsche Bank’s corporate bank, told Reuters the move reflects the growth of the digital asset economy, including hundreds of billions of dollars in stablecoins.
He also tied it to the bank’s goal of 8% compound annual growth in corporate banking by 2028.
What it will hold
According to a Deutsche Bank press release from 16 September, the service will start with Bitcoin, Ether and a small set of stablecoins: Circle’s USDC and EURC, and AllUnity’s EUR stablecoin, EURAU.
The bank has worked with crypto infrastructure firm Taurus since September 2023 to support its custody plans.
The regulatory step
A Deutsche Bank spokesperson said the bank expected approval in October under the EU’s Markets in Crypto-Assets Regulation, known as MiCA.
The European Securities and Markets Authority’s interim MiCA register now shows an authorisation from Germany’s Federal Financial Supervisory Authority, BaFin, dated early this week.
A MiCA licence granted in one EU country can be used to serve clients across the bloc.
What happens next
The next milestones are the German launch date and the names of the Asian financial centres, neither of which had been announced at the time of writing.
Each Asian market will need its own local approval, so the 2027 timeline depends on regulators outside the EU as well.
