German major Deutsche Bank plans to launch a digital asset custody service by 2026-end, subject to the completion of the applicable regulatory process, as the European lender expands its offerings for institutional investors seeking regulated access to cryptocurrency markets.
As per the bank, the service will initially target corporate and institutional clients in Europe, providing custody for selected digital assets, including Bitcoin and Ether, alongside stablecoins and e-money tokens such as USDC, EURC, and EURAU.
The bank will manage digital wallets and private keys on behalf of clients, allowing them to safeguard their holdings and transfer digital assets to third parties without having to build and maintain their custody infrastructure.
“Digital assets are not a replacement for the traditional financial system but an important complement to it,” said Gerald Podobnik, Co-Head of Deutsche Bank’s Corporate Bank.
Podobnik further described digital assets as new infrastructure that can operate alongside existing financial markets while benefiting from the security and safeguards offered by regulated institutions.
Podobnik said the service would evolve in response to client demand, regulatory requirements, and the bank’s risk appetite.
Deutsche Bank could expand the range of supported assets over time, subject to internal approvals, risk controls, and regulatory requirements. Tokenised financial instruments are also included in its development roadmap, signalling a potential move beyond conventional cryptocurrency custody.
Security will be central to the offering. The bank plans to use hardware-based protection for private keys, segregated responsibilities, multi-person approval procedures, and separate warm and cold storage environments. Redundant technical infrastructure, alongside controlled backup and recovery arrangements, will provide additional operational safeguards.
Selected external technology and infrastructure providers will support specific components of the service.
The initial client base will include customers of Deutsche Bank’s Corporate Bank and Investment Bank, spanning companies, asset managers, hedge funds, custodians, brokers, and sovereign institutions. Access will depend on the bank’s due diligence procedures, eligibility criteria, and risk assessment.
However, the launch remains contingent on regulatory clearance, and the service’s timing, geographical reach, and supported assets could change.
Deutsche Bank also cautioned that digital assets carry significant risks, including volatility, fraud, cyber incidents, and failures among market participants. Unlike eligible bank deposits, crypto-assets do not receive equivalent protection.