Deutsche Bank Wants to Enter Cryptocurrency Market: Applies for Digital Asset Custody License – Deutsche Bank (NYSE:DB)

Deutsche Bank AG database It has reportedly filed a regulatory application to operate a custody service for digital assets, including cryptocurrencies.

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

“We are building our custody business and digital assets,” David Lynne, who heads the lender's commercial banking unit, said at a conference Tuesday. "We have just submitted our application to Bafin for the license of digital assets," he said, referring to Germany's securities regulator.

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This move is aimed at improving fee income within Deutsche Bank's corporate bank, Bloomberg informed.

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

While Deutsche Bank's corporate banking division had previously hinted at introducing digital asset custody by the end of 2020, no specific timetable was provided.

Stefan Hoops was in charge of the division at the time, and David Lynne took over his role about a year ago when Hoops took over as CEO at DWS.

Deutsche Bank's chief financial officer estimated a 15-20% decline in second-quarter 2023 fixed-income trading revenue at a conference in Paris. He expects revenue from the investment banking division to decline by 15% or a a little worse Y/Y in Q2.

Price Action: DB shares fell 1.82% to $10.23 during the pre-market session in late check on Tuesday.