Germany’s Deutsche Bank Set to Launch Crypto Custody Services in 2026.

German banking giant Deutsche Bank is set to launch its cryptocurrency custody service in 2026, as Bloomberg disclosed. This highlights a growing institutional appetite for regulated digital asset services.

The bank’s intention to offer digital asset custody solutions aligns with an increasing number of major financial institutions venturing into the crypto space.

Moreover, custody services, which involve the secure storage of digital assets on behalf of clients, are becoming a critical offering for traditional financial players. These companies seek to cater to institutional investors and corporate clients demanding robust and compliant solutions for their cryptocurrency holdings.

Deutsche Bank Sets 2026 Crypto Timeline

Deutsche Bank’s projected 2026 timeline suggests a deliberate and phased approach, allowing ample time for the development of requisite infrastructure and the meticulous establishment of regulatory compliance frameworks, a testament to the bank’s commitment to a measured entry into this nascent sector.

The bank is moving forward with its plans by developing a new Ethereum network using ZK-sync technology. The project, part of “Project Dama 2” and linked to Singapore’s “Project Guardian,” aims to speed up transactions and ensure compliance with strict financial rules.

This new network will help banks that work with public blockchains manage risks, such as payments involving sanctioned groups and dealing with changes in the blockchain system. A test version was shown in November, and the full version will launch once regulators approve it.

This new direction for Deutsche Bank follows a period of careful consideration. The bank’s leaders decided in 2023 not to offer digital asset services, calling cryptocurrencies ”too risky.” However, things are changing, especially in the German banking world.

Major Banks’ Crypto FOMO

Sparkassen, a major group of savings banks in Germany, plans to allow its customers to trade cryptocurrencies such as Bitcoin and Ethereum directly through their bank accounts. The move comes as the European Union has introduced new rules for crypto assets, known as MiCA.

Its subsidiary, DekaBank, will manage Sparkassen’s crypto services. Dekabank has already received a license to handle cryptocurrency custody from Germany’s financial watchdog, BaFin. This enables them to provide trading and safekeeping services to larger institutions. Expanding to regular customers is the next logical step for Sparkassen.

This clarity has encouraged many European banks to accelerate their crypto projects, which they previously deemed too risky due to differing national regulations. Despite this clarity, German regulators continue to monitor crypto risks closely.

Germany’s agency for preventing money laundering reported a record 8,711 suspicious activity reports related to cryptocurrency transactions in 2024, despite a decline in overall financial crime alerts.

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