Deutsche Bank, one of Germany’s largest financial institutions, today announced plans to launch a digital asset custody service in 2026, tapping into the booming digital market. According to a Bloomberg report, the bank formed a partnership with Bitpanda’s technology subsidiary and Swiss firm Taurus SA. The bank aims to provide secure storage for cryptocurrencies, such as Bitcoin, catering to institutional investors and corporate clients.
Partnership Formed for Custody Launch
Deutsche Bank will leverage Bitpanda’s technological infrastructure and Taurus’ secure storage solutions. This service aims to provide a regulated platform specifically designed for institutional clients, ensuring compliance with Germany’s stringent financial regulations.
Last year, the bank announced a collaboration with Bitpanda, an Austrian cryptocurrency exchange, aimed at enhancing real-time payment solutions for virtual asset transactions in Germany. This partnership is said to facilitate seamless deposits and withdrawals for clients. The year before, the bank made a significant investment in Taurus SA’s $65 million funding round, thereby aligning itself with a partner known for its expertise in tokenized asset management.
Stablecoins and Tokenized Deposits Under Study
Deutsche Bank has disclosed that it is also actively exploring stablecoins and tokenized deposits to modernize its payment systems. Stablecoins, cryptocurrencies pegged to stable assets such as the euro or the US dollar, provide a reliable foundation for digital transactions.
Meanwhile, tokenized deposits utilize blockchain to represent bank deposits, enabling faster and more cost-effective settlements. Sabih Behzad, head of digital assets at Deutsche Bank, told Bloomberg this month that the bank is considering issuing its stablecoin or participating in industry-wide initiatives.
Additionally, the bank is considering proprietary tokenized deposit solutions to enhance payment efficiency. Deutsche Bank’s asset management arm, DWS, is already collaborating with Galaxy Digital and Flow Traders on a euro-denominated stablecoin, highlighting its commitment to digital assets.
This dual strategy of custody services and innovative payment solutions highlights Deutsche Bank’s cautious yet bold approach to digital assets, striking a balance between regulatory compliance and financial innovation to meet client demands. With regulatory clarity from U.S. stablecoin legislation and the European MiCAR framework, Deutsche Bank’s efforts could transform cross-border payments, the bank reported.
