Posted 2 weeks ago | Catoshi Nakamoto
A December report from the World Economic Forum indicates that Deutsche Bank has plans for a “digital asset custody platform.”
In a December report by the World Economic Forum entitled: “Crypto, What Is It Good For: An Overview of Cryptocurrency Use Cases,” WEF presents details from Deutsche Bank about a proof of concept for cryptocurrency custody.
The report, as pointed out by CoinDesk, expresses Deutsche Bank’s eagerness to expand its product offerings into cryptocurrency.
The planned “digital asset custody platform” is split into four phases, with the first being providing custody to “institutional investors, such as asset managers, wealth managers/family offices, corporates and digital funds.” The second phase will be to allow buying and selling via brokers and exchanges.
“value-added services such as taxation, valuation services, and fund administration, lending, staking and voting, and provide an open-banking platform to allow onboarding of third-party providers,” Deutsche Bank wrote.
Deutsche Bank promises to “ensure the safety and accessibility of assets for clients by offering an institutional-grade hot/cold storage solution with insurance-grade protection.”
In the subsequent phases, Deutsche Bank will add numerous services around crypto including — tax accounting to staking tokens onplatforms—with the final phase offering trading and token issuance.
According to the document, “The bank has completed its proof of concept and is aiming for a minimum viable product in 2021 while exploring global client interest for a pilot initiative.”
Deutsche Bank has also previously said that Central Bank Digital Currencies or CBDCs, would permanently replace fiat as Bitboy Crypto reported.
Citing that “cash has come under much scrutiny during the pandemic” due to concerns about the virus’ transmission, Deutsche Bank Macro Strategist Marion Laboure writes of the need to “promote” digital currencies not to fall behind the countries that already do. According to Deutsche Bank’s research team, the coronavirus pandemic has accelerated digital payments over cash, which gives legitimacy to Central Bank Digital Currencies (CBDCs.)
Deutsche Bank called on governments worldwide and private companies to work on alternatives to credit cards, stating:
“Worldwide lockdowns and social distancing measures have only increased the use of cards over cash. To respond, companies and policymakers must design alternative to credit cards and remove middle man fees. […] For now, the priority must be on regional digital payment systems. In the long term, central bank digital currencies will replace cash.”
Deutsche Bank is the 21st-largest bank in the world as well as the sixth-largest in Europe, with assets of $1.5 trillion under its control.
Bitcoin is currently trading at [FIAT: $48,082.75] DOWN -1.7% in the last 24 hours according to Coingecko at the time of this report.