Deutsche Bank, Germany’s largest bank, has joined the ranks of large financial institutions seeking to provide digital currency safeguards in order to provide responsive services to hedge funds active in the field of digital currencies.
to thethe report CoinDesk, the prototype of the trust service, is now set up with the goal of creating “a trust platform for institutional investors investing in digital currencies and seamlessly integrating these assets into the wider ecosystem of digital currencies.”
The World Economic Forum, which hosts the World Economic Forum in Davos, Switzerland, annually addresses this issue in a lesser-known report.
Deutsche Bank, in a text hidden under the pages of page 23 of the December 2020 report, stated that it intends to launch a platform for trading and issuing tokens. The plan aims to build a bridge between digital assets and traditional banking services, as well as manage a variety of digital and fiat assets on an easy-to-use platform.
One after another, the world’s largest banks are announcing their plans to enter the field of digital currencies and provide security services in this field. New York Mellon Bank, the world’s largest custodial bank, also joined the banquet last week.
US banks have achieved a level of regulatory transparency thanks to explanatory statements from the US Currency Control (OCC) last year. In Germany, companies are also queuing up to receive a special digital currency deposit service license from the German regulator (BaFIN).
Deutsche Bank, the 21st largest bank in the world, stated that its goal is to “ensure the security and accessibility of assets for customers by providing a hot and cold storage solution at the institutional level with a level of insurance support.” The report does not name any specific digital currencies or tokens.
The trust platform will be launched in several phases and will eventually enable the purchase and sale of digital currencies through partnerships with major brokers (who guide cover fund customers), token issuers and approved exchanges.
The German bank has said it plans to offer features such as “value-added services such as taxation, fund valuation and management services, lending, stock proof and voting” on the platform. “Providing an open banking platform to enable the acceptance of third party suppliers” is also one of the bank’s goals.
According to Deutsche Bank, the target community of these services consists of asset managers, capital managers, family offices, companies and digital funds.
Deutsche Bank announced that as a business model, it will collect security service fees and later tokens and transactions fees.
The bank has also said that it has completed the proof-of-concept phase of its platform and plans to launch its first official product prototype in 2021 to simultaneously identify and review such innovative projects from global customers.