Deutsche Bank is in talks to invest in two cryptocurrency companies as part of its efforts to stimulate growth. cryptocoin.comWe have compiled the investment news for these two crypto money companies for you.
Investing in crypto companies
According to people familiar with the matter, DWS Group, led by Chief Executive Stefan Hoops, held several talks focused on purchasing a minority stake in Deutsche Digital Assets, a Frankfurt-based provider of cryptocurrency exchange products.
Tradias, a market maker owned by Bankhaus Scheich, is another potential target for investment. In late 2021, Frankfurt prosecutors selected Tradias to sell the seized cryptocurrency in a way that minimized volatility. As with DDA, negotiations to invest in Tradias focus on purchasing a minority stake.
The return to crypto comes as Hoops tries to improve the reputation of DWS after allegations of green laundering resulted in investigations by US and German authorities. This is an interesting approach, as the crypto ecosystem has been plagued by its own scandals and not exactly a good reputation with global regulators.
In December, Hoops presented an outline of the bank’s blockchain and digital currencies strategy, which includes a plan to ‘build or buy a variety of blockchain-related custom services’ as a way to ‘lay the foundation for a digital future’.
Due diligence has begun
During an earnings call last week, Hoops said that DWS has “started assessing strategic partners and doing due diligence on potential targets” in areas where it wants to develop new capabilities, such as digital assets. According to Hopps, the recent drop in digital asset prices could provide ‘interesting opportunities’ for DWS.
Interest in blockchain technology and how it can be integrated into traditional finance has been growing among the corporate crowd in recent months as a number of heavy hitters have been involved in the technology. In October, America’s oldest bank, Bank of New York Mellon (BNY Mellon), announced that it will begin allowing customers to hold crypto assets on the same platform alongside their traditional investments, making it the first major US bank to do so.
The results of a survey commissioned by the bank revealed that 70% of the institutions surveyed stated that they would increase their digital asset activities if services such as custody and enforcement were obtained from well-known, reliable institutions. 88% signaled that they continue to move forward with their predetermined plans despite the market recession.
According to the survey, the vast majority (91%) of institutional investors are interested in investing in tokenized products, but want to do so in a safe and compliant way.
Activities increased
BlackRock, the world’s largest financial asset manager by AUM, has also increased its activities in the cryptocurrency space over the past year. In August, the company partnered with the largest US-based cryptocurrency exchange Coinbase to provide greater access to cryptocurrencies for institutional investors starting with Bitcoin (BTC).
Also in August, BlackRock launched a private trust that offers US institutional customers direct exposure to Bitcoin. The following month, the firm launched the iShares Blockchain Technology UCITS ETF, created to track the NYSE FactSet Global Blockchain Technologies Capped index. The fund is ‘designed for investors seeking exposure to a wide variety of companies involved in the development, innovation and use of blockchain and crypto technologies.’
According to Joseph Chalom, global head of Strategic Ecosystem Partnerships at BlackRock, the firm’s institutional clients are ‘increasingly interested in digital asset markets and are focused on efficiently managing the operational lifecycle of these assets.’
