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- Deutsche Bank to offer Bitcoin custody solution for institutional clients.
- Cake Group CEO believes the move will not substantially increase capital inflow or attract new participants.
- Deutsche Bank’s Paul Maley projects the digital asset sector to grow to trillions of dollars.
In reaction to Deutsche Bank recent launch of bitcoin custody services targeted at institutional clients, Julian Hosp, the CEO of Cake Group, a well-known DeFi company, showed little enthusiasm. Hosp’s response to Bitcoin Magazine’s tweet about the news, which read, “Unfortunately, it appears to be of little significance to most,” perfectly encapsulated his feelings.
The CEO of Cake Group claimed that German cryptocurrency investors already have many options for buying Bitcoin. He noted that among these choices include using cryptocurrency exchanges and buying bitcoin through exchange-traded funds (ETFs) with light trading activity.
Hosp made the case that the involvement of conventional banks in the cryptocurrency market might not significantly increase capital inflows or attract new participants. He claims that these banks are merely shifting the current demand for digital assets. According to him:
In the meanwhile, it has been disclosed by Bitcoin Magazine that Deutsche Bank’s action would allow the German financial goliath to directly hold bitcoin on behalf of its clients. According to the article, the bank, which is in charge of more than $800 billion in assets, would provide institutional clients with custody services for Bitcoin and a limited range of other digital assets.
Additionally, the publication underlined that this achievement represents a ground-breaking effort on German land. Notably, Deutsche Bank will carry out this project in collaboration with the Swiss cryptocurrency company Taurus.
Paul Maley, the global head of securities services at Deutsche Bank, has stressed the growing significance of the digital asset market. Maley emphasized the sector’s potential to include assets with monetary worth in the trillions.
