Deutsche Bank prepares crypto custody launch, targets Asia growth

By Selena Li

BANGKOK, Oct 16 (Reuters) - Deutsche Bank DBKGn.DE is weeks away from launching its first digital asset service, marking a push into crypto custody as Germany's biggest lender seeks to tap growth in the digital economy, its corporate banking chief told Reuters.

After the launch in Germany, the bank plans to expand the custody platform into Asian financial centres next year, Gerald Podobnik, co-head of the corporate bank, said on the sidelines of the IMF and World Bank meetings in Bangkok.

The move forms part of Deutsche Bank's broader strategy to achieve compound annual growth of 8% in corporate banking by 2028, said Podobnik, a 23-year veteran of the lender.

He cited the rapid growth of the digital economy, including hundreds of billions of dollars held in stablecoins, as evidence that new pools of value have emerged over the past two decades.

"I believe that, as the financial system, we will need to offer tokenised or blockchain solutions to our clients as additional services alongside our traditional ones ... but not necessarily to replace what we are doing today," Podobnik said.

The phased rollout will initially support custody of major cryptocurrencies such as bitcoin and ether before expanding to services that help clients move money into and out of mainstream stablecoins.

Deutsche Bank also plans to offer tokenised deposits and help clients issue blockchain-based securities such as digital bonds, Podobnik said.