Deutsche Bank Quietly Begins Plans for a Cryptocurrency Platform After Publishing Numerous Surveys Denouncing Digital Currencies
After publishing a number of surveys that denounced several cryptocurrencies including Bitcoin, it appears that Deutsche Bank has now decided to reverse its stance, and finally see the criticized assets as an opportunity.
According to a report published by the World Economic Forum back in December, the German bank has been preparing a token issuance and trading platform for digital currencies. The report, which has thus far evaded the media’s radar until it was recently brought into focus by Coindesk over the weekend, reveals that the bank has already established a Deutsche Bank Digital Asset Custody prototype, that will lead to “a fully integrated custody platform for institutional clients and their digital assets, providing seamless connectivity to the broader cryptocurrency ecosystem.”
Deutsche Bank’s latest project will reportedly merge digital assets with traditional banking services, as well as help manage the numerous digital assets and fiat currencies on one platform. The platform is expected to be launched on step-by-step basis, beginning with issuing custody of digital assets to “institutional investors, such as asset managers, wealth managers/family offices, corporates and digital funds.” The lender will then create an opportunity to hold cryptocurrencies for the purpose of buying and selling through brokers and exchanges.
Eventually, Deutsche Bank plans to create services specifically for digital assets, including tax accounting and staking tokens on blockchain platforms. According to the report, the German bank has thus far completed its proof of concept, and now aims to unveil a minimum viable product sometime in 2021, while also exploring global client interest in a pilot initiative.
The incorporation of digital assets into traditional banking systems has been increasing, as a number of prominent financial institutions have recently announced plans to start using cryptocurrencies. Earlier this week, the Bank of New York Mellon revealed that it will begin storing Bitcoin and other cryptocurrencies for its users, meanwhile Mastercard also announced that it too, will begin backing certain digital currencies sometime in 2021. Although Deutsche Bank has yet to make an official announcement regarding its new trading platform, the news did spark a further rally in Bitcoin, sending the cryptocurrency soaring to a new record of US$49,000 on Sunday.
Information for this briefing was found via Coindesk. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
