Deutsche Bank announced on September 16 that it will launch a digital asset custody service for institutional and corporate clients in Europe this year, subject to the completion of the applicable regulatory process. The bank will manage wallets and private keys on clients' behalf, reducing the need for you to build and maintain your own custody infrastructure.
What the service covers
According to the official announcement, the service has two core functions: safeguarding digital assets and transferring them to third parties. The first clients are due to go live this year, depending on the regulatory timeline.
Gerald Podobnik, Co-Head Corporate Bank at Deutsche Bank, said digital assets "are not a replacement for the traditional financial system but an important complement to it". He added that the service will be developed further in line with client demand, regulatory requirements and the bank's risk appetite.
Assets supported at launch
Asset | Category | Status |
|---|---|---|
Bitcoin (BTC) | cryptocurrency | at launch |
Ether (ETH) | cryptocurrency | at launch |
USDC | stablecoin / e-money token | at launch |
EURC | stablecoin / e-money token | at launch |
EURAU | stablecoin / e-money token | at launch |
Tokenized financial instruments | - | on the roadmap |
The list may be expanded over time, subject to client demand and the bank's product-approval, risk management and regulatory processes.
Security and controls
The solution is built on multiple layers of security and operational control within a strict governance framework. The bank uses selected external technology and infrastructure providers for defined technical components.
- Secure key generation with hardware-based protection
- Segregation of duties and multi-person approval processes
- Separate warm and cold storage environments
- Redundant technical setup
- Controlled backup and recovery arrangements
Who can onboard
The initial target group is made up of European clients of Deutsche Bank's Corporate Bank and Investment Bank. Onboarding depends on the bank's criteria, due-diligence requirements and risk appetite.
- Corporates
- Asset managers and hedge funds
- Custodians and brokers
- Sovereign institutions
The bank notes that the timing, geographical availability, supported assets and scope of the service may change as a result of regulatory requirements, internal approvals, market developments or client demand. Crypto-assets are not covered by a deposit-guarantee scheme comparable to the protection for eligible bank deposits.