For some time, Deutsche Bank has been actively exploring the cryptocurrency market. In 2021, this financial giant had expressed its interest in cryptocurrency deposit services, with the aim of attracting institutional investors who were still reluctant to invest in this sector.
Deutsche Bank wants to become a crypto custodian in Germany
Deutsche Bank has put its money where its mouth is. In accordance with an announcement it made in 2021, the institution has materialized its intention to enter the crypto market. On Tuesday June 20, the German banking group formalized a request to offer crypto services in Germany.
The procedure particularly targets activities related to the safekeeping of cryptos. A process that would therefore make Deutsche Bank a depository of cryptos in the country. The information is not a rumor. It is confirmed by a spokesperson for the financial group.
The latter clarified that this is a license application submitted to BaFin, the German financial regulator. It is not yet certain that he will follow up on the process even if, a priori, there is no obstacle to the procedure.
But if the process is completed, Deutsche Bank would then be able to offer “institutional-grade hot/cold storage solutions with insurance-grade protection.”
A combination of circumstances that boosted the price of bitcoin?
Deutsche Bank’s decision to offer services would be attractive to many institutional clients in the medium term. But in the short term, the effects of this decision impacted the crypto market.
Indeed, bitcoin recently exploded above the $28,000 mark. Some have attributed this soaring price of the flagship crypto to the Bitcoin ETF application recently filed by BlackRock in the United States.
But it is certain that the request for a crypto license from Deutsche Bank has also contributed significantly to this improvement. You only have to realize the financial power that this bank represents to realize it.
The other element that may have also contributed to the rise in the price of bitcoin is the arrival on the market of EDX. This platform, which offers transactions in BTC, among others, to institutional investors, has received support. And, not least.
According to the explanations of the crypto critic Peter Schiff, the new exchange would be supported by Charles Schwab, Fidelity Digital Assets and Citadel Securities. Investment funds, usually refractory to cryptos.
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