1.34 trillion asset manager Deutsche Bank to offer Bitcoin service

[DVlog]

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

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[icalical]

Not to be negative, but I think Custody Services by bank is too risky for both the Bank and the Customers because of Bitcoin volatility. As far as I know, when we hand over our assets to the bank for Custody service, those assets will be lended by the Bank to the other customers. If on the period of those lending, the Bitcoin price change either surge or drop significantly, it might be a disaster for the Bank and the customer.

[DVlog]

Not to be negative, but I think Custody Services by bank is too risky for both the Bank and the Customers because of Bitcoin volatility. As far as I know, when we hand over our assets to the bank for Custody service, those assets will be lended by the Bank to the other customers. If on the period of those lending, the Bitcoin price change either surge or drop significantly, it might be a disaster for the Bank and the customer.

You are right. I am thinking about the publicity and users bitcoin will get from that bank. All of them won't use their custody service when they realize the risk associated with it. Many of them will turn their faces towards non-custodial wallets. More users means money inflow into the bitcoin market. This will increase the bitcoin market cap as well. These big institutions can provoke regulators for clearer regulation as well.

[so98nn]

That’s called as good face and bad face at the same time. We can’t rely on the banks for crypto services because we would end up sending our money in the centralised possession. Banks will earn the interest on that money they will also earn interest by giving away the loans at higher interest rates. They will definitely Back up the stability with fiat money itself. This is going to be encircling economy where no one but the banks will benefit a lot. I hope nobody use their services. Let us keep the money in bitcoin form preferably in our own custody. In the cold wallet or paper wallet. :-)
I am not sure what others to think about it but this is should be the way.

[Poker Player]

Not to be negative, but I think Custody Services by bank is too risky for both the Bank and the Customers because of Bitcoin volatility. As far as I know, when we hand over our assets to the bank for Custody service, those assets will be lended by the Bank to the other customers. If on the period of those lending, the Bitcoin price change either surge or drop significantly, it might be a disaster for the Bank and the customer.

Are you sure about that? Drawing a parallel with stocks, there are custody services that cannot provide your shares and others that can. Obviously, the latter are cheaper in terms of fees than the former, but bank brokers or brokers linked to banks usually offer the former (simply custody, without being able to lend, and charging a fee).

That’s called as good face and bad face at the same time. We can’t rely on the banks for crypto services because we would end up sending our money in the centralised possession.

Yes, not us on the forum, but many people who are now afraid of Bitcoin would buy it if they can do it through their bank and deposit it there. It is the recurring dilemma: it is not what Bitcoin was designed for, and in fact it goes against its philosophy, but it helps mass adoption and the rise in price.

[DVlog]

That’s called as good face and bad face at the same time. We can’t rely on the banks for crypto services because we would end up sending our money in the centralised possession.

Yes, not us on the forum, but many people who are now afraid of Bitcoin would buy it if they can do it through their bank and deposit it there. It is the recurring dilemma: it is not what Bitcoin was designed for, and in fact it goes against its philosophy, but it helps mass adoption and the rise in price.

Exactly! I can not blame my friend for not trusting bitcoin. It is my fault that I didn't try to spread awareness among my friends about Bitcoin or they fear to believe my word. But when they see that a large bank that they often use provides services for bitcoin they will trust it more than my word. A few of us don't trust the banking system and want to revolutionize the system, most of the people out there still have trust in banks. They will use it.

[m2017]

Is there a link to the source of this information other than the twitter link? Preferably, an official announcement about this from the Deutsche Bank.

A certain effect of popularizing bitcoin will occur if such a big bank as the Deutsche Bank offers storage services for bitcoin and crypto. But the problem is that banks want to make money by offering these services, and services that the bitcoin user can provide to himself. The user will give his btc to banks (loses control over his assets) and at the same time still pay (loses money) for an unnecessary service. What could be more stupid? The funny thing is that there will be plenty of people willing to take advantage of this stupidity.

[Faisal2202]

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.

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.

[DVlog]

Is there a link to the source of this information other than the twitter link? Preferably, an official announcement about this from the Deutsche Bank.

A certain effect of popularizing bitcoin will occur if such a big bank as the Deutsche Bank offers storage services for bitcoin and crypto. But the problem is that banks want to make money by offering these services, and services that the bitcoin user can provide to himself. The user will give his btc to banks (loses control over his assets) and at the same time still pay (loses money) for an unnecessary service. What could be more stupid? The funny thing is that there will be plenty of people willing to take advantage of this stupidity.

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

Some people think that it is not secure to store their bitcoins by themselves, like some people think they cannot protect their gold, so they keep it in their bank lockers or with some custodians. They fear that they will lose their private key or hardware wallet, or they will die and their family won't get their bitcoin. People have different understandings of their surroundings, so those types of people who don't feel comfortable managing their own bitcoin wallet will use the services provided by the bank. Most of all, they will get a convenient environment to buy and sell their bitcoins.

I understand your concern about the potential risk associated with banks, but this can make some people's bitcoin lives easier. At least, this is what they think.

[tabas]

I remember when Credit Suisse was shaking, the news and people's attention turns to Deutsche Bank as they think that it's the next one to face a collapse. I didn't followed what's next on it but it seems that those were just scary thoughts from everybody that has been invested a lot to Credit Suisse.

Some people think that it is not secure to store their bitcoins by themselves, like some people think they cannot protect their gold, so they keep it in their bank lockers or with some custodians. They fear that they will lose their private key or hardware wallet, or they will die and their family won't get their bitcoin. People have different understandings of their surroundings, so those types of people who don't feel comfortable managing their own bitcoin wallet will use the services provided by the bank. Most of all, they will get a convenient environment to buy and sell their bitcoins.

I understand your concern about the potential risk associated with banks, but this can make some people's bitcoin lives easier. At least, this is what they think.

Yes, that's the actual use and service of theirs. Just like the typical investor that are not confident of their own skill but invests into asset management that has their own asset manager where they're responsible to keep their portfolios up and invests and spreads their clients money based on the decision of the manager. On the case of this custody service, even if we worry about those people that don't know much or don't like to setup their own wallets and bitcoin investments, that's their choice to choose services from banks like the Deustche Bank.

[Upgrade00]

Some people think that it is not secure to store their bitcoins by themselves, like some people think they cannot protect their gold, so they keep it in their bank lockers or with some custodians. They fear that they will lose their private key or hardware wallet, or they will die and their family won't get their bitcoin.

They will more easily lose their Bitcoin from keeping it on a third party custody service than from storing it themselves. The billions of dollars that has been lost to hacks or closures from custody service is very large compared to those who have lost their private keys or hardware wallets
When you consider that major hacks gets cover stories but users who are locked out of their wallets by the custody service are isolated cases and goes unreported the amount of lost or stolen bitcoins gets longer.

I understand your concern about the potential risk associated with banks, but this can make some people's bitcoin lives easier. At least, this is what they think.

They are thinking very wrong.

[DVlog]

Some people think that it is not secure to store their bitcoins by themselves, like some people think they cannot protect their gold, so they keep it in their bank lockers or with some custodians. They fear that they will lose their private key or hardware wallet, or they will die and their family won't get their bitcoin.

They will more easily lose their Bitcoin from keeping it on a third party custody service than from storing it themselves. The billions of dollars that has been lost to hacks or closures from custody service is very large compared to those who have lost their private keys or hardware wallets
When you consider that major hacks gets cover stories but users who are locked out of their wallets by the custody service are isolated cases and goes unreported the amount of lost or stolen bitcoins gets longer.

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.

I understand your concern about the potential risk associated with banks, but this can make some people's bitcoin lives easier. At least, this is what they think.

They are thinking very wrong.

Yeah, but you can't do anything about it except spread more awareness.

[Zlantann]

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.

This is good news for those who believe that they cannot handle or safely keep their investments. Other banks such as the French bank Societe Generale, Luxembourg branch of Standard Chartered and New York based Mellon Corp. are all registered cryptocurrency custodians. But I think they have limits to the amount of cryptocurrencies they can keep.

Yes, not us on the forum, but many people who are now afraid of Bitcoin would buy it if they can do it through their bank and deposit it there. It is the recurring dilemma: it is not what Bitcoin was designed for, and in fact it goes against its philosophy, but it helps mass adoption and the rise in price.

This kind of service will boost public confidence in Bitcoin because many people trust banks and believe in any service they provide. Another benefit of this service is that these customers' crypto deposits will be insured or protected by a deposit insurance company which means clients can get back their crypto deposits if Deutsche Bank goes through bankruptcy. But like you stated,  Bitcoin is designed to be in self-custody because not your keys, not your coins.

[avikz]

Not to be negative, but I think Custody Services by bank is too risky for both the Bank and the Customers because of Bitcoin volatility. As far as I know, when we hand over our assets to the bank for Custody service, those assets will be lended by the Bank to the other customers. If on the period of those lending, the Bitcoin price change either surge or drop significantly, it might be a disaster for the Bank and the customer.

Custody service doesn't work that way! It's not a deposit where banks offers you an interest on it. Custody service literally means safeguarding an asset against a fee. So when you deposit bitcoin to the custodian, they will safeguard your bitcoins against a monthly or annual fees.

In case, some hacker hacks the bank's wallet and steal everything, your bitcoin will remain safe because it is the custodian's responsibility to return the bitcoins to you and the assets are always insured. There's no pending involved in custody.

[DeathAngel]

Institutional investing & custodianship will have a much bigger role to play in the next couple of years than in previous times. Bitcoin is in big demand & they all want their slice of the pie. Institutions were very wary & doubtful about the value of bitcoin until fairly recently. They are going to have to get involved soon though or miss out on a huge wave of adoption & the profits that come with that.

[Captain Corporate]

This type of title is to make it quite incredible but also a big lie at the same time. I mean they word it in a way that is "1.34 trillion asset manager" as in like if they are going to put all that money into bitcoin lol. We do not know if they are going to put in 50 million dollars or 5 billion, its a mystery to us, sure they are offering this service but its not know if they are going to end up with anything decent or not. We are going to end up with something that is a bit more done than that. This is why wording of this articles title is basically a way to manipulate you, like make it look like there will be ton of money going into bitcoin after this, when in reality we have absolutely no idea at all.

[DVlog]

This type of title is to make it quite incredible but also a big lie at the same time. I mean they word it in a way that is "1.34 trillion asset manager" as in like if they are going to put all that money into bitcoin lol. We do not know if they are going to put in 50 million dollars or 5 billion, its a mystery to us, sure they are offering this service but its not know if they are going to end up with anything decent or not. We are going to end up with something that is a bit more done than that. This is why wording of this articles title is basically a way to manipulate you, like make it look like there will be ton of money going into bitcoin after this, when in reality we have absolutely no idea at all.

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?

[icalical]

Not to be negative, but I think Custody Services by bank is too risky for both the Bank and the Customers because of Bitcoin volatility. As far as I know, when we hand over our assets to the bank for Custody service, those assets will be lended by the Bank to the other customers. If on the period of those lending, the Bitcoin price change either surge or drop significantly, it might be a disaster for the Bank and the customer.

Custody service doesn't work that way! It's not a deposit where banks offers you an interest on it. Custody service literally means safeguarding an asset against a fee. So when you deposit bitcoin to the custodian, they will safeguard your bitcoins against a monthly or annual fees.

In case, some hacker hacks the bank's wallet and steal everything, your bitcoin will remain safe because it is the custodian's responsibility to return the bitcoins to you and the assets are always insured. There's no pending involved in custody.

Oh okay, maybe I was lost in translation, but I don't think I can find a similar practice in my local bank, especially related to crypto asset. I really thought that 'Custodian Service' means that customer deposit their Bitcoin and they can't withdraw it for a certain period of time, and they will get some interest at the end of period. What is the benefit for the customer to use the custodian service instead of just using a cold wallet then? I mean would prefer just using a cold/hardware/offline wallet.

[Poker Player]

Some people think that it is not secure to store their bitcoins by themselves, like some people think they cannot protect their gold, so they keep it in their bank lockers or with some custodians. They fear that they will lose their private key or hardware wallet, or they will die and their family won't get their bitcoin. People have different understandings of their surroundings, so those types of people who don't feel comfortable managing their own bitcoin wallet will use the services provided by the bank. Most of all, they will get a convenient environment to buy and sell their bitcoins.

I understand your concern about the potential risk associated with banks, but this can make some people's bitcoin lives easier. At least, this is what they think.

That's just the way it is. If someone like my aunt is going to end up buying Bitcoin at some point, she's going to do it through her bank and deposit it there, just like a lot of people on the street. Even billionaires who buy large amounts usually do it through centralized entities and deposit it there. Today I have seen the case of Mark Cuban, but Saylor at least initially said that he did it this way, but he did not shy away from the idea of self-custody in the future, which I do not know if he has already done, but in these cases I imagine that they want everything transparent as they are under scrutiny and also the possibility of suing a company if something happens with what they have there.

Another thing is that I personally plan to avoid banks like the plague for Bitcoin purchase and custody.

[Synchronice]

Not to be negative, but I think Custody Services by bank is too risky for both the Bank and the Customers because of Bitcoin volatility. As far as I know, when we hand over our assets to the bank for Custody service, those assets will be lended by the Bank to the other customers. If on the period of those lending, the Bitcoin price change either surge or drop significantly, it might be a disaster for the Bank and the customer.

It is far more riskier for them to let companies like Binance to takeover whole crypto business, it's far more riskier to weaken your influence on the the currency of the future. And Bitcoin Custody Service isn't really that risky for banks as you describe. Banks are long-term holders and long-term, bitcoin holders win. What matters for them is to increase number of coins, its everyday value is not that important.

Is there a link to the source of this information other than the twitter link? Preferably, an official announcement about this from the Deutsche Bank.

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/