Key Takeaways
- • Deutsche Bank has gone live with its Digital Asset Custody (DAC) service, enabling corporate and institutional clients across Europe to hold bitcoin, ether, USDC, EURC, and EURAU with the bank managing wallets and private keys.
- • Deutsche Bank and Deutsche Asset Management signed a memorandum of understanding to explore tokenized money market funds, crypto-asset exchange-traded commodities (ETCs), and stablecoins using the DAC platform.
- • Deutsche Asset Management, which reported €1.22 trillion ($1.36 trillion) in assets under management as of Sept. 30, said it plans to launch a tokenized money market fund.
- • The DAC service was first announced in September pending regulatory approval; the bank previously partnered with Taurus in 2023 on digital asset custody and tokenization.
Summary
Deutsche Bank announced the launch of its Digital Asset Custody (DAC) service on Wednesday, alongside a new agreement between the bank and its asset management arm, Deutsche Asset Management, to explore tokenized financial products, according to The Block. The service was first announced in September, pending regulatory approval, and now allows customers to hold bitcoin (BTC), ether (ETH), USDC, EURC, and EURAU with Deutsche Bank, which manages their wallets and private keys and enables transfers to other parties. The offering targets corporate and institutional customers across Europe.
The custody system uses warm and cold storage, hardware-based protection for private keys, and multi-person transaction approvals. The bank previously partnered with Taurus in 2023 to develop digital asset custody and tokenization services, and Bitpanda was also reported to be involved in the project. Paul Maley, the bank's global head of trust and securities services, said the bank aims to deliver "a fully integrated, regulated ecosystem that supports the custody, tokenization, and settlement of digital assets" over the medium term.
Deutsche Bank and Deutsche Asset Management signed a memorandum of understanding covering tokenized money market funds, crypto-asset ETCs, and stablecoins. The firms will examine custody and settlement arrangements, liquidity management, treasury, and distribution, all using the DAC platform. Manfred Bauer, chief product officer at Deutsche Asset Management, said the firm was planning to launch a tokenized money market fund.
Deutsche Asset Management already offers crypto-asset ETCs and is involved in AllUnity, the stablecoin venture backed by DWS, Flow Traders, and Galaxy. The Block previously reported in May that AllUnity planned to introduce a Swedish krona-backed stablecoin, SEKAU, alongside its existing euro- and Swiss franc-denominated tokens. Deutsche Asset Management said it had €1.22 trillion ($1.36 trillion) in assets under management as of Sept. 30.
The custody system uses warm and cold storage, hardware-based protection for private keys, and multi-person transaction approvals. The bank previously partnered with Taurus in 2023 to develop digital asset custody and tokenization services, and Bitpanda was also reported to be involved in the project. Paul Maley, the bank's global head of trust and securities services, said the bank aims to deliver "a fully integrated, regulated ecosystem that supports the custody, tokenization, and settlement of digital assets" over the medium term.
Deutsche Bank and Deutsche Asset Management signed a memorandum of understanding covering tokenized money market funds, crypto-asset ETCs, and stablecoins. The firms will examine custody and settlement arrangements, liquidity management, treasury, and distribution, all using the DAC platform. Manfred Bauer, chief product officer at Deutsche Asset Management, said the firm was planning to launch a tokenized money market fund.
Deutsche Asset Management already offers crypto-asset ETCs and is involved in AllUnity, the stablecoin venture backed by DWS, Flow Traders, and Galaxy. The Block previously reported in May that AllUnity planned to introduce a Swedish krona-backed stablecoin, SEKAU, alongside its existing euro- and Swiss franc-denominated tokens. Deutsche Asset Management said it had €1.22 trillion ($1.36 trillion) in assets under management as of Sept. 30.
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