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Deutsche Bank has launched its digital asset custody service for paying clients, marking a significant step in the German lender's efforts to expand its presence in digital financial markets. The service is aimed at institutional and corporate clients and will allow them to securely hold digital assets, including Bitcoin and Ether.
The launch, announced on Wednesday, November 11, comes as European banks show increasing interest in cryptocurrency and blockchain-based financial services. Germany's largest lender had first announced plans for the custody offering in September, subject to regulatory approvals.
The newly launched service will provide institutional and corporate clients across Europe with facilities to safeguard and store selected digital assets. Deutsche Bank had earlier outlined plans to support cryptocurrencies such as Bitcoin and Ether through its custody platform.
The service is part of the bank's broader strategy to develop regulated infrastructure for digital assets rather than limit its operations to traditional banking services.
Paul Maley, global head of trust and securities services at Deutsche Bank, said the lender intends to expand its digital asset capabilities over time.
"In the medium term we aim to deliver a fully integrated, regulated ecosystem that supports the custody, tokenization, and settlement of digital assets," Maley said.
The bank had previously told Reuters that it was also considering expanding the custody offering to Asian markets, signaling plans to build a wider international presence in the digital asset sector.
Alongside the service launch, Deutsche Bank announced that it had entered into a memorandum of understanding with Deutsche Asset Management, the money manager it mostly owns and which was until recently known as DWS.
The agreement is intended to explore commercial and technical collaboration opportunities in the digital asset space.
The proposed collaboration could help the two businesses examine opportunities linked to digital financial infrastructure and blockchain-based services.
Deutsche Bank's latest move comes amid growing interest among European financial institutions in cryptocurrency-related services. Traditional banks are increasingly exploring ways to provide regulated access to digital assets as institutional demand develops.
For Deutsche Bank, the custody service represents an expansion beyond conventional banking operations. Its longer-term ambition is to build an integrated digital asset ecosystem covering custody, tokenization and settlement.
The planned expansion into Asia could further extend the bank's presence in digital financial markets as it develops its offering for institutional and corporate customers.