Deutsche Bank, Germany's biggest lender, is preparing to launch its first digital asset custody service within weeks, according to Gerald Podobnik, co-head of the bank's corporate bank.
The platform will initially roll out in Germany before expanding into Asian financial centers in the following year, Podobnik told Reuters during the IMF and World Bank meetings in Bangkok.
The custody service forms part of Deutsche Bank's broader strategy to achieve compound annual growth of 8% in corporate banking by 2028. The bank cited the rapid growth of the digital economy and the hundreds of billions of dollars held in stablecoins as evidence of emerging pools of value in blockchain-based assets.
The phased rollout will begin by supporting custody of major cryptocurrencies including Bitcoin and Ether, with plans to expand to services helping clients move funds into mainstream stablecoins. Deutsche Bank will manage wallets and private keys on behalf of clients and support stablecoins and e-money tokens including USDC, EURC, and EURAU at launch.
The initial target market includes corporates, asset managers, hedge funds, custodians, brokers, and sovereign institutions. The service is not intended for retail clients.
Deutsche Bank also plans to offer tokenized deposits and assist clients in issuing blockchain-based securities such as digital bonds.
