Deutsche Bank aims to develop a fully integrated custody platform for institutional clients and their digital assets for connectivity to the broader cryptocurrency ecosystem. The bank has completed its proof of concept and is aiming for a minimum viable product in 2021 while exploring global client interest for a pilot initiative.
The German bank’s plans are to:
- introduce a secure connected bridge between digital assets and a customer’s traditional banking services;
- manage the array of digital assets and fiat holdings in one easy-to-use platform, and create the gateway for value added services either supplied by the custodian or via third-party providers; and
- ensure the safety and accessibility of assets for clients by offering an institutional-grade hot/cold storage solution with insurance-grade protection
The digital asset custody platform will be launched in stages, providing:
- insured digital asset custody for vetted digital assets on behalf of institutional investors, such as asset managers, wealth managers/family offices, corporates and digital funds;
- clients with the ability to buy and sell digital assets via a partnership with prime brokers, issuers and vetted exchanges to build out the seamless integration across platforms
- value-added services such as taxation, valuation services and fund administration, lending, staking and voting, and an open-banking platform to allow onboarding of third-party providers
- issuance and trading capabilities
The platform will be embedded with a full suite of regulated banking services, including KYC/AML, compliance, settlement and more. Intuitive UX and CX will be crucial. The platform’s focus is on simplifying the customer experience and design implementation as a means of creating a differentiated product.