1.34 trillion asset manager Deutsche Bank to offer Bitcoin service

[Lucius]

You are right, but you cannot change some people's minds. Some people are so stubborn that you cannot convince them against anything they think is right. Actually, the whole point is bringing more people onboard. Let people decide how they want to manage their funds, but at first let them use bitcoin. Some of them might move themselves towards self-custodial methods in the future.
~snip~

I don't see anything positive in the fact that a bank that has been in big trouble for years will offer a service that, at least when it comes to Bitcoin, not only makes no sense, but is also potentially risky for anyone who uses such a service. Those who are not able to install a digital wallet or buy HW should not even engage in such investments - not to mention that storing Bitcoin in this way loses its true meaning.

By mentioning their management size, we can imagine a clear picture of their experience and influence. If someone thinks that they are going to put all of their assets into bitcoin, they lack common sense. If these asset managers manage 1% of their total assets, that will be impactful as well. Just think how many asset managers applied for ETFs, and what if they all put 1% of their total assets toward buying bitcoin?

Their assets under management are about 10 times smaller than BlackRock's, or 4-5 times smaller than Fidelity's - and besides, we are talking about the EU, where Bitcoin is nowhere near as popular as in the US. I do not believe that this will be the case even if a large bank offers this kind of service.

Besides, who in their right mind would allow their cryptocurrencies to be kept by a bank that constantly appears in the media in a negative context?

https://www.nytimes.com/2023/07/19/business/federal-reserve-deutsche-bank-fine.html
https://www.nestseekers.com/Guides/MarketReports/deutsche-bank-crisis-glance
https://www.usnews.com/news/economy/articles/2023-03-24/meltdown-in-deutsche-bank-shares-shows-banking-crisis-is-not-yet-over

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[davis196]

Is there an official announcement from Deutsche Bank about this news or do we have to trust some random Twitter account?
I have the feeling that this is fake news. Germany isn't the most Bitcoin/crypto friendly country in the world and Deutsche Bank is notorious for having problems with the regulators. Bitcoin is designed to be self-custodial. Leaving your BTC in a bank is a complete nonsense.
I think that the banks offering such crypto custody services think that most of the crypto enthusiasts are idiots.

[Yamane_Keto]

Providing these services is beneficial to the bank, as a group of investors want to try Bitcoin but do not want to be exposed to the private keys and bear responsibility. Such a group of investors may be looking for profits that these banks need. Also, stock and investment portfolio managers may recommend about 1% of the net assets in the bank. High-risk investments, and here Bitcoin is a suitable option for everyone.

I find this to be excellent news, and if companies and institutions continue to put 2% to 5% in Bitcoin, a lot will change quickly.

[BitcoinTurk]

When one of the world's largest banks offers such services, it gives more credibility to the industry and opens the door for wide adoption. This also shows the increase in consumer demand for digital assets like bitcoin. This will help the regulator provides clear rules and regulations to foster industry growth. Their move towards digital assets is a timely step when other top asset managers are applying for bitcoin ETFs. The demand for digital assets at the consumer end will force the regulator to come up with ideas to announce some clear regulation.




Source: https://twitter.com/WatcherGuru/status/1702325787049984186

Just a few years ago many banks, former economists and regulators argued that Bitcoin was illegal due to its lack of any centralized structure. We have seen that many large investment companies, banks and similar financial institutions have turned to Bitcoin in the last few months as its use by more and more individuals increases day by day. Although all the news is about attempts at this stage I think we will see many financial institutions offering these services in the near future.

I don't really want to express my negative thoughts but since Bitcoin is a volatile asset it may not attract much attention from financial institutions such as banks and customers at the first stage. The reason for this is that although blockchain technology has proven itself, the volatility that occurs due to the decentralized structure poses risks for both the intermediary institutions and the customers of these institutions. Of course, as I just mentioned, just a few years ago many financial institutions claimed that Bitcoin was unreliable but today it is possible to solve this problem or find a way as they continue to work to provide their customer portfolio with easy access to Bitcoin.

On the other hand, I hope that the Bitcoin price will not be taken under control by these institutions and large capital companies/investors and will not cause the vision of decentralization to be eliminated.

Finally, today's market conditions cause us not to see a serious price increase despite such good news coming one after the other. For this reason, we may see significant price increases in Bitcoin price after a possible economic recovery.

[Lucius]

Is there an official announcement from Deutsche Bank about this news or do we have to trust some random Twitter account?
~snip~

If you know German and are intelligent enough to find their site, maybe the answer you're looking for is there. If you want to save time, you should read what others have written on this topic, because if you had done that, you would surely have seen two links posted by other members.

~snip~
It's not officially posted by DB but a lot of news websites post about that, for example, here is a Reuters article: https://www.reuters.com/business/finance/deutsche-bank-hold-crypto-institutional-clients-2023-09-14/

Here is the link: https://watcher.guru/news/deutsche-bank-to-offer-bitcoin-and-crypto-custody-services

Germany isn't the most Bitcoin/crypto friendly country in the world and Deutsche Bank is notorious for having problems with the regulators. Bitcoin is designed to be self-custodial.
~snip~

A country where you pay 0% tax if you sell Bitcoin or another cryptocurrency for a year or more after purchase is not friendly enough? I don't know what is your version of a friendly country when it comes to Bitcoin?

[cafter]

snip

If that it is then this type of custody we were doing previous to this announcement like we can store our private key(written on paper or anything waterproof/heat proof) or hardware wallet in bank locker with other things like gold, cash, etc.
why going through this extra transaction fee of sending bitcoin to banks wallet address.

[Fortify]

When one of the world's largest banks offers such services, it gives more credibility to the industry and opens the door for wide adoption. This also shows the increase in consumer demand for digital assets like bitcoin. This will help the regulator provides clear rules and regulations to foster industry growth. Their move towards digital assets is a timely step when other top asset managers are applying for bitcoin ETFs. The demand for digital assets at the consumer end will force the regulator to come up with ideas to announce some clear regulation.

Deutsche bank, like many in fairness, has been in it's fair share of scandals lately and will be on the hunt for new sources of income it thinks can be leveraged into a cost center. While it does give some legitimacy to Bitcoin in the short term, there is nothing to prevent them getting smacked down hard by either German regulators or those in places like America later on. It seems strange that more banks haven't started providing this service, but in reality they are the stalwarts who supposedly take great pride in heavily vetting their financial services and knowing who their customers are. Bitcoin can open them up to a bit of murky activity unless they take great care and they have been punished by huge fines for getting these things wrong in the past.

[DVlog]

Providing these services is beneficial to the bank, as a group of investors want to try Bitcoin but do not want to be exposed to the private keys and bear responsibility. Such a group of investors may be looking for profits that these banks need. Also, stock and investment portfolio managers may recommend about 1% of the net assets in the bank. High-risk investments, and here Bitcoin is a suitable option for everyone.

I find this to be excellent news, and if companies and institutions continue to put 2% to 5% in Bitcoin, a lot will change quickly.

Blackrock alone holds $10 trillion worth of assets, which is 10 times bigger than the total market capital of the crypto industry, and several of these companies have applied for ETFs. If one of their ETFs gets approve, others will as well. A small chunk of their assets in the bitcoin market can do wonders for bitcoin prices and its adoption. Users will join the masses through these companies.

snip

If that it is then this type of custody we were doing previous to this announcement like we can store our private key(written on paper or anything waterproof/heat proof) or hardware wallet in bank locker with other things like gold, cash, etc.
why going through this extra transaction fee of sending bitcoin to banks wallet address.

People will use their service if they are offering interest over their holding.

[Spaceman1000$]

When one of the world's largest banks offers such services, it gives more credibility to the industry and opens the door for wide adoption. This also shows the increase in consumer demand for digital assets like bitcoin. This will help the regulator provides clear rules and regulations to foster industry growth. Their move towards digital assets is a timely step when other top asset managers are applying for bitcoin ETFs. The demand for digital assets at the consumer end will force the regulator to come up with ideas to announce some clear regulation.




Source: https://twitter.com/WatcherGuru/status/1702325787049984186

The bank has taken a bold step in offering this service, especially considering the huge amount involved.
We hoping for some of this groundbreaking offers in Africa, so it help in spreading the Dominance of Bitcoin across-this side of the globe.
Where I can just walk into a bank and make a Bitcoin transaction.

[DVlog]

We hoping for some of this groundbreaking offers in Africa, so it help in spreading the Dominance of Bitcoin across-this side of the globe.
Where I can just walk into a bank and make a Bitcoin transaction.

Most low-GDP countries, like Africa, want to use bitcoin to fight inflation. They don't have the infrastructure or capability to do nation-wide bitcoin adoption. Due to a lack of working law and enforcement agencies, people from these countries easily fall into fraudulent activity. We all want to spread bitcoin dominance, but with the proper infrastructure to develop a bitcoin-centric monetary system. Otherwise, people will develop a misunderstanding in their minds that bitcoin is full of scams.

[tygeade]

If that it is then this type of custody we were doing previous to this announcement like we can store our private key(written on paper or anything waterproof/heat proof) or hardware wallet in bank locker with other things like gold, cash, etc.
why going through this extra transaction fee of sending bitcoin to banks wallet address.

Bank lockers cost money too, sometimes a lot more than just a transaction fee, depending on the size and the popularity of the bank shop you are talking about, some bank stores are at popular places, like at the middle of the most crowded place, so they have larger safes and a lot more expensive, the further you go from civilization and you reach the same bank but a different store, you will get smaller and cheaper ones.

When we are talking about something online like this, you are talking about something that could be cheaper, not saying will be cheaper, but could be cheaper. Plus you do not have to actually go there after first time, which saves you a trip as well and could be done at your home via your mobile phone.

[hd49728]

Bank lockers cost money too, sometimes a lot more than just a transaction fee, depending on the size and the popularity of the bank shop you are talking about, some bank stores are at popular places, like at the middle of the most crowded place, so they have larger safes and a lot more expensive, the further you go from civilization and you reach the same bank but a different store, you will get smaller and cheaper ones.

Banks have different types and tiers and a higher tier they are classified in, a bigger size their banks are, they will have to be regulated by more and stricter rules from central banks. It is to avoid bankruptcies from big banks that will trigger terrible domino-effects. Consequently, using services provided by those big banks will be more costly.

Why do we need those services from banks when we can buy bitcoin on non KYC exchanges, without support from banks.

https://kycnot.me/
Non-KYC exchange Encyclopedia

[Lucius]

~snip~
Why do we need those services from banks when we can buy bitcoin on non KYC exchanges, without support from banks.]

When you say "we", then you are surely referring to an ordinary individual who can certainly choose the way in which he will buy cryptocurrency, while banks focus more on institutional players to whom they will primarily offer custodial services, not necessarily cryptocurrency trading.

It is logical that such investors will not use DEX because they still strive for transparency and seek liquidity and professional help with large investments, as is the case with Microstrategy and their business relationship with Coinbase.

This whole story with banks and cryptocurrencies in the EU is already several years old, but there is no great reason to be overly enthusiastic.

Deutsche Bank has partnered with Swiss crypto firm Taurus to provide custody services for institutional clients' cryptocurrencies and tokenised assets, Taurus said in a statement on Thursday.

The partnership means Deutsche Bank will, for the first time, be able to hold a limited number of cryptocurrencies for its clients, as well as tokenised versions of traditional financial assets, a Deutsche Bank spokesperson said.

[Sayeds56]

That's good news for the BTC and the whole crypto industry. No doubt, this does not directly put impact on the BTC's reputation but indirectly it does. Like, for the mass adoption of the BTC first digital currency must be accepted by the traditionally minded peoples. Who still sticks to traditional finance? Steps like these will promote the digital currency and people will get to know about them. Then trust will be built in their minds. And at last, they will get to know more about BTC.

And I hope once they know more about BTC they will definitely accept its decentralization factor and ignore the services being provided by the centralized authorities like these banks. Because there are basically 2 types of people. One who, doesn't want to use any centralized platform along with a decentralized one means they don't want to link their personal life with the crypto finance life. And then there are 2nd type of people who don't care about it. They openly used CEXs and DEXs and openly performed KYC and connected their personal life with the crypto sphere.

Besides all that, this news is still good news and it will definitely bring more audience and acceptance in BTC (digital currency) and it will ultimately increase its demand.

Indeed, involvement of the prominent financial institution like Deutsche bank is a very encouraging development and reflects the increasing demand of Bitcoin within European continent. This advancement can potentially pave the way for widespread acceptance of Bitcoin within Western countries where infrastructure is robust and know how about Bitcoin and its technology is more advance. However, the growing involvement of banks and issuance of Bitcoin ETFs may pose challenges to fundamental principle of decentralization.

[Peanutswar]

Custody service with the use of the bitcoin is quite risky with their organization I guess we know how does the market is volatile or else they have another plan with the bitcoin they hold like for trades or lending so they can earn back all of those possible lose, and also if these services have a lock period sure they will offer something to the holders like having a reward, an increase of APY and etc. but as a user you will lock their funds with this service is not good I guess they don't have the full authority to their coin and possible market crash might lessen the value of their asset.

[Sayeds56]

Custody service with the use of the bitcoin is quite risky with their organization I guess we know how does the market is volatile or else they have another plan with the bitcoin they hold like for trades or lending so they can earn back all of those possible lose, and also if these services have a lock period sure they will offer something to the holders like having a reward, an increase of APY and etc. but as a user you will lock their funds with this service is not good I guess they don't have the full authority to their coin and possible market crash might lessen the value of their asset.

Your concerns regarding custody services that involve the use of Bitcoin or other crypto cryptocurrencies due to their nature of high level of volatility, are indeed valid. However, in order to mitigate this risk, banks may employ many strategies including lending Bitcoin on reasonable interest rates, as you mentioned in your post. However, introducing locking period when users can't access their funds, can be problematic, especially in case user requires immediate access for emergencies.

It is important to bear in mind that custody services primarily cater to large individual investors or entities who invest with long term perspective, often awaiting Bitcoin halving events when it traditionally delivers exceptional results.

[jaberwock]

Custody service with the use of the bitcoin is quite risky with their organization I guess we know how does the market is volatile or else they have another plan with the bitcoin they hold like for trades or lending so they can earn back all of those possible lose, and also if these services have a lock period sure they will offer something to the holders like having a reward, an increase of APY and etc. but as a user you will lock their funds with this service is not good I guess they don't have the full authority to their coin and possible market crash might lessen the value of their asset.

For a company with 1.34 trillion dollars assets (and imagine their profits) that type of money would be "peanuts" (pun intended lol). I am sure that they will try to find the best cold storage method that they could before they do this and they will not have any trouble at all, I get that some people may think about it differently but I think it is going to be as good as it gets.

The best thing about this would be making sure that things are looking smooth, because if they can make it work for even just a while and people do not see any issues there at all, everyone will start to join even more. First order of business would be starting and having no issues for a very long time, rest will be a lot easier after that.

[DVlog]

Custody service with the use of the bitcoin is quite risky with their organization I guess we know how does the market is volatile or else they have another plan with the bitcoin they hold like for trades or lending so they can earn back all of those possible lose, and also if these services have a lock period sure they will offer something to the holders like having a reward, an increase of APY and etc. but as a user you will lock their funds with this service is not good I guess they don't have the full authority to their coin and possible market crash might lessen the value of their asset.

For a company with 1.34 trillion dollars assets (and imagine their profits) that type of money would be "peanuts" (pun intended lol). I am sure that they will try to find the best cold storage method that they could before they do this and they will not have any trouble at all, I get that some people may think about it differently but I think it is going to be as good as it gets.

The best thing about this would be making sure that things are looking smooth, because if they can make it work for even just a while and people do not see any issues there at all, everyone will start to join even more. First order of business would be starting and having no issues for a very long time, rest will be a lot easier after that.

It doesn't make sense for them not to use a top notch tech company to build cold storage methods for them. They wants to make profits and attract more custormer to use their services and they know some customer would be skeptical of using this type of service from a bank.

Crypto is usually stored individually in a privet wallet so if they are using this kind of service through a company then they need to convince their customers that it will be better than self-custody.

[Twentyonepaylots]

Custody service with the use of the bitcoin is quite risky with their organization I guess we know how does the market is volatile or else they have another plan with the bitcoin they hold like for trades or lending

I'm pretty sure they have unique terms and agreements when it comes to services such as managing clients bitcoin, since we all know that crypto's prices are volatile, especially the bitcoin. They must have did it because of the less movement these days from the price of bitcoin, noticeably bitcoin is declaring its floor for the past years and that might be the very reason why this bank offered such services and they know that they are benefiting from it in the future. Also, they know how mind of millionaires are thinking when it comes to money making.

but as a user you will lock their funds with this service is not good I guess they don't have the full authority to their coin and possible market crash might lessen the value of their asset.

I wouldn't accept such offer if that's the case. BUT, I'll accept if there's a vesting period.