In a much-overlooked report by the World Economic Forum, the Deutsche Bank is featured presenting proof of concept for crypto custody.
The Deutsche Bank crypto custody prototype will provide a fully integrated platform that provides seamless connectivity to the extensive cryptocurrency system.
The bank plans to expand its digital offerings in four stages.
Stage 1: The bank will provide to its investors, including asset managers, corporates, and digital funds
Stage 2: In addition to holding crypto, the bank will now allow trading through crypto exchanges and various brokerages
Stage 3: The bank will offer extra services like taxation, fund administration, and staking tokens to complement their core services.
Stage 4: Offer trading and token issuance.
In the report, the largest bank in Germany lays out their vision to bridge the gap between traditional and the now trendy virtual financial systems.
Big Banks Rush For Crypto Custody
The Deutsche bank joins a lot of financial institutions maximizing on crypto custody.
Big banks all throughout the world are pacing themselves towards the offerings of crypto custody. Earlier this week, the world’s largest custodian bank-Bank of New York Mellon, announced their joining.
US banks are a bit advantageous than the German ones based on regulation. The Office of the Comptroller of the Currency released an interpretation letter offering regulatory clarity.
German banks, however, are a bit blurred on the process. Several banks are queuing to get licenses from BaFIN, the country’s regulator.
It is key to note that the Deutsche bank has not yet mentioned any specific cryptocurrency or tokens it will add. On the other hand, they have assured the safety and accessibility of the assets. The virtual assets will be stored in insurance grade protections of cold and hot storages
What next for the Deutsche Bank
Now that the Deutsche Bank completed their proof of concept for crypto custody, the next course of action will probably be to launch a minimum viable product this year and explore global client welfares.