Deutsche Bank Prepares Institutional Crypto Custody Service for Later This Year

Deutsche Bank is set to launch an institutional crypto custody service later this year for corporate and institutional clients. The bank plans to initially support custody and transfer of Bitcoin (BTC), Ether (ETH), and some stablecoins, including USDC, EURC, and EURUA. This move will allow clients to manage their digital assets without building separate infrastructure.

Deutsche Bank's new service will include features such as hardware-based key protection, multi-approval procedures, cold and hot wallets, and backup systems. The initial client base is expected to consist of asset managers, hedge funds, custodians, and sovereign wealth funds, with conventional companies and digital-asset firms also being potential clients.

The bank expects it may take years for the custody business to generate revenue, but plans to expand its revenue base over time by adding further services. Gerald Podobnik, co-head of Deutsche Bank's corporate bank, stated that digital assets can complement existing financial infrastructure rather than replacing it.