Deutsche Bank Unveils Crypto Custody Deal

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Many crypto investors are faced with the issue of where to safely store their cryptocurrency.

The main options for storage for many are either leaving it on the exchange where they bought it or using a self-custody software or hardware wallet for extra security.

There are pros and cons to these options, with the former leaving your coins at risk of hackers and the collapse of the exchange and the later adding an additional technical hurdle to overcome.

The obvious solution then is to store your crypto in a traditional bank, but the options are limited. At the time of writing, Revolut, for example, was one of only a handful of banks in the UK that supported crypto deposits.

However, this may be starting to change after the announcement that Deutsche Bank has teamed up with Swiss crypto firm Taurus to provide custody services, although this will only be available to institutional client to start with.

This may also potentially signal a move towards banks offering crypto custody services to retail clients, including the storage of tokenised assets.

Banks that offer crypto custody services

Other major banks that are offering crypto custody services to institutions include:

• BNP Paribas
• DZ BANK AG
• Credit Agricole

It’s clear that there’s a growing demand for crypto custody services, especially among retail investors who are most likely to face difficulties storing their coins.

However, there are still many hurdles to overcome, especially in light of a huge increase in crypto-related fraud.

This prompted Chase UK to ban clients from making any crypto related payments in 2023. Chase is a subsidiary of financial giant JP Morgan Chase.

However, with Gen Z investors twice as likely to hold crypto in their portfolios compared to Millennials, it’s clear that the demand for secure custody will continue to rise.

But for now, retail investors have to either take the risk of keeping their coins on an exchange or learn the process involved in moving their private keys to a self-custody wallet solution for additional security.