Deutsche Bank to Launch Digital Assets Custody Service in 2026

Deutsche Bank, Germany’s largest financial institution, is reportedly set to launch a digital assets custody service in 2026. This initiative is part of the bank's ongoing efforts to expand its presence in the cryptocurrency market. The service will be developed in collaboration with the technology unit of Bitpanda, an Austria-based crypto exchange, and Taurus, a Swiss technology provider backed by Deutsche Bank.

This move marks Deutsche Bank's latest attempt to enter the crypto storage market, following its initial ambitions revealed in 2020. The bank has shown increasing interest in cryptocurrency markets in recent years, with its head of digital assets, Sabih Behzad, stating in early June that the bank was considering entering the stablecoin market. Behzad highlighted the momentum of stablecoins and the supportive regulatory environment, particularly in the US. He noted that banks have various options to engage in the stablecoin industry, including acting as reserve managers or issuing their own stablecoins.

In addition to stablecoins, Deutsche Bank is also reportedly assessing the development of its own tokenized deposit solution for use in payments. Late last year, the bank was reportedly developing its own layer-2 (L2) blockchain on Ethereum using ZKsync technology. These developments indicate Deutsche Bank's strategic focus on integrating blockchain technology into its financial services.

In 2023, Deutsche Bank planned to launch crypto custody options in partnership with Taurus, following the application for a digital asset custody license in Germany. The bank has also previously collaborated with Bitpanda on improving crypto payments at the crypto exchange since at least June 2024. These collaborations underscore Deutsche Bank's commitment to leveraging technology to enhance its crypto offerings.

The announcement follows another major German financial institution, Sparkassen-Finanzgruppe, which recently announced plans to introduce crypto trading services to its customers. This trend highlights the growing interest among traditional financial institutions in embracing cryptocurrencies and blockchain technology.

Deutsche Bank's entry into the crypto custody market is a significant development, as it represents one of the largest traditional banks venturing into this space. The bank's collaboration with Bitpanda and Taurus suggests a strategic approach to leveraging existing technology and expertise to provide secure and reliable crypto custody services. This move is likely to attract more institutional clients looking for trusted custodial solutions in the cryptocurrency market.