Deutsche Bank is looking at crypto investments to recoup losses and speed growth. This comes after the fall of global markets last year.
According to a new Bloomberg report, the German banking giant’s DWS Group is already in discussions to invest in two Germany-based crypto firms.
Sources told Bloomberg that the DWS Group head, CEO Stefan Hoops, is in negotiations to buy a minority stake in Deutsche Digital Assets, a crypto asset manager.
He is also looking to invest in Tradias, a digital assets trading firm owned by Bankhaus Scheich, a market maker in securities and digital assets.
Per the report, Hoops said during an earnings call last week that the current downswing in crypto markets could present DWS with “interesting opportunities” for investments.
Hoops also said during the call that DWS has “started to assess strategic partners and commence due diligence on potential targets,” including digital assets.
According to Bloomberg, revamping growth is a primary focus for DWS after reporting outflows of $21.5 billion in 2022 and a $114.8 billion drop in managed assets.
Public representatives from DWS, Tradias and Galaxy made no official comments on the matter.
Several banking and asset management giants have made forays into the crypto market in the last several months.
Last November, BlackRock, the largest asset manager in the world, took over the management of a portion of stablecoin issuer Circle’s USDC reserves. In the same month, American banking titan JPMorgan filed a trademark for a new crypto wallet with the ability to exchange and transfer digital currencies.
Interest in blockchain technology and how it can be integrated into traditional finance has been on the rise among the institutional crowd in recent months as multiple heavy hitters have gotten involved with the technology.
In October, Bank of New York Mellon (BNY Mellon), America’s oldest bank, announced that it would begin allowing customers to hold their cryptocurrency assets alongside their traditional investments on the same platform – becoming the first large U.S. bank to do so.
The results of a survey commissioned by the bank found that 70% of the institutions surveyed indicated that they would increase their digital asset activity if services like custody and execution were available from recognized, trusted institutions. 88% signaled that they are still moving forward with their previously determined plans despite the market downturn.
The vast majority (91%) of institutional investors are interested in investing in tokenized products but are looking to do so in a safe and compliant manner, the survey found.
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