Deutsche Bank’s asset management division is in talks to invest in two German cryptocurrency companies, according to people familiar with the matter.
According to Bloomberg report On February 8, DWS Group CEO Stefan Hoops is currently in talks to purchase a minority stake in Deutsche Digital Assets, a crypto-exchange-traded product provider. It is also in talks with Tradias, a market maker company owned by traditional financial market maker Bankhaus Scheich.
Hoops is bullish about the opportunities presented in the digital asset space.
In a recent earnings call, executives said DWS “has begun evaluating strategic partners and begun due diligence on potential targets,” and expects it to gain a foothold that includes digital assets.
Falling digital asset prices could present an “interesting opportunity” for DWS, he said.
Talking about the bank’s strategy for the crypto industry, Hoops mentioned Plans to build or acquire “a variety of specific blockchain-related services.”
According to Deutsche Digital Assets’ website, the company offers investors exposure to crypto assets through a variety of investment vehicles, ranging from passive to actively managed funds, as well as a white label service for asset managers. It offers.
Tradias is an over-the-counter (OTC) trading platform for cryptocurrencies and security tokens created by Bankhaus Scheich in 2020, providing crypto loans and liquidity services.
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The cryptocurrency investment reportedly comes amid DWS’ efforts to revive growth and restore its reputation following allegations of tax evasion and greenwashing. lead Under investigation in Germany and the USA.
The offices of DWS and Deutsche Bank were raided by Frankfurt prosecutors in May 2022 after finding “sufficient evidence” that ESG standards were only applied to a small number of assets, contrary to marketing claims. it was done.
Germany is considered to be one of the strongest overall “traditional tax” crypto economies that rewards long-term crypto holders as it charges zero tax for holding crypto for more than a year.
Germany ranks among the most favorable crypto economies, according to the October crypto ranking, which assesses factors such as crypto prospects, clear crypto tax rules, and more transparent regulatory communication.