Deutsche Bank Explores Crypto Investments to Revive Growth
• Deutsche Bank’s asset management arm is in talks to invest in two German cryptocurrency firms, Deutsche Digital Assets and Tradias.
• DWS CEO Stefan Hoops is attempting to revive growth for the firm after claims of greenwashing and tax fraud.
• The bank has outlined a blockchain and digital currencies strategy which includes building or buying several blockchain-related services.
Deutsche Bank Explores Crypto Investment
Germany’s biggest private bank, the asset management arm of Deutsche Bank AG, is reportedly in discussions to invest in two German cryptocurrency platforms. The potential investments are Deutsche Digital Assets, a Frankfurt-based crypto exchange-traded products provider, and Tradias owned by Bankhaus Scheich.
Reviving Growth After Claims of Greenwashing & Tax Fraud
The move comes as DWS CEO Stefan Hoops attempts to restore its reputation after claims of greenwashing and tax fraud in investigations by the US and German authorities. In December 2020, Hoops outlined the bank’s blockchain and digital currencies strategy which includes plans to build or buy multiple specific blockchain-related services for its digital future.
Crypto Opportunities Amid Downturn
In a recent earnings call, Hoops noted that DWS has commenced assessing strategic partners for due diligence on potential targets where it expects to gain new capabilities, including digital assets. Additionally, he mentioned that the downturn in digital asset prices could yield „captivating opportunities“ for DWS.
Deutsche Digital Assets Services
According to its website, Deutsche Digital Assets facilitates investors‘ exposure to crypto assets via investment vehicles ranging from passive funds to actively managed funds and white-labeling services for asset managers. On the other hand, potential investment firm Tradias offers OTC trading solutions designed specifically for institutional investors.
Hoops appears committed to driving growth at DWS through blockchain technology investments such as crypto platforms like Deutschland Digital Assets and Tradias owned by Bankhaus Scheich. This could be an excellent opportunity given that various governance scandals have rocked the crypto ecosystem lately with the demise of FTX being one example among many others