Deutsche Bank reportedly looking to invest in 2 crypto firms
- German bank Deutsche Bank AG is said to be negotiating minority stakes in Deutsche Digital Assets and Tradias.
- A Bloomberg report on Wednesday claimed the deals are being led by Deutsche Bank’s asset management division.
- DWS Group has previously pointed out the benefits of blockchain to the bank.
Deutsche Bank AG, one of the world’s leading banking and financial services providers, has reportedly set its eyes on two German-based cryptocurrency companies.
A report by Bloomberg on Wednesday 8 February, 2023 revealed that Deutsche Bank’s asset management unit DWS Group is looking to acquire minority stakes in crypto-traded products firm Deutsche Digital Assets and crypto trading platform Tradias.
Bankhaus Scheich, one of the top securities trading providers in Germany’s banking sector, owns Tradias.
Sources say the DWS Group is currently negotiating deals with the two digital asset platforms and has previously sought collaboration with Mike Novogratz’s Digital Galaxy.
Deutsche Bank keen on blockchain technology
According to the Bloomberg report, the reported investments are part of Deutsche Bank’s crypto strategy, which includes plans to snap up a chunk of the crypto products trading market amid growing interest from clients.
Stefan Hoops, CEO of DWS Group noted during the bank’s recent earnings call that the crypto winter had probably created an interesting window of opportunities, particularly with crypto prices hitting levels seen in late 2022.
Hoops, who has previously talked about Deutsche Bank’s plans to utilise the blockchain for its products, hinted at a further push towards an overall crypto strategy. Indeed, the bank released a report in March 2021 noting that Bitcoin could be an important asset given the interest from institutional investors.
Deutsche Bank reported a profit of € 5.6 billion (just over $6 billion) in the financial year 2022, a 65% jump in profit before tax. It is the bank’s highest annual profit in 15 years, with the last time it reported such profits being in 2007.
Per the results, net profit rose to € 5.7 billion (about $6.11 billion) year-on-year, more than double the previous cycle. However, profits from asset management fell 27% to € 598 million (about $641 million).
