Deutsche Bank, Germany’s leading financial institution, is developing its own cryptocurrency depository. This was reported in the report of the World Economic Forum.
Germany’s largest financial conglomerate is creating its own cryptocurrency storage solution for institutional investors.
With the help of it, the German financial conglomerate intends to offer its clients the following services:
- Management of an array of digital and fiduciary money.
- Hot and cold wallet security with additional insurance.
As of October 2020, Deutsche Bank’s crypto depository was in proof of concept status. The status of the product now remains unknown.
German treasure trove of cryptocurrencies
It is expected that the project will pay off through commissions, including storage, tokenization and trading fees. At the start, the financial institution will offer verified cryptocurrency services on behalf of institutional investors.
Subsequently, Deutsche Bank intends to provide the ability to buy and sell cryptocurrency through partnerships with brokers, issuers and crypto exchanges. As part of the transition to the crypto market, Deutsche Bank will also provide additional services in the form of tax calculation, lending, staking, etc.
It is noteworthy that in the future, the financial conglomerate even plans to provide an opportunity to issue its own digital currencies. The sandbox will include a full suite of KYC / AML, regulatory compliance, and more.
Deutsche Bank’s move towards the virtual asset market is in line with the bank’s previous statements. In September 2020, the bank’s experts noted that central bank digital currencies (CBDC) will significantly affect financial relationships around the world. It is worth noting that Deutsche Bank pointed out the inevitability of the adoption of digital currencies back in December 2019.
According to forecasts of the financial conglomerate, cryptocurrencies will become the cornerstone of the modern world economy in the next decade.