Sources said the company is discussing buying a stake in Deutsche Digital Assets and Tradias.
Deutsche Bank’s asset management division is reportedly aiming to invest in two German cryptocurrency companies in a bid to fuel growth.
Bloomberg reported that the company is analyzing the purchase of a minority stake in Deutsche Digital Assets and Tradias, owned by Bankhaus Scheich. Meanwhile, a collaboration with Galaxy Digital, directed by Mike Novogratz, could also be in the works.
Deutsche Bank Crypto Investments During Market Downturn
According to Crunchbase, Tradias is a Frankfurt-based FinTech company that offers digital asset management, lending, stock exchange, and cryptocurrency trading services, while Deutsche Digital Assets is a Frankfurt-based provider of cryptocurrency exchange-traded instruments.
Bloomberg Markets tweeted that “Deutsche Bank’s asset management arm is in talks to invest in two German cryptocurrency firms as part of efforts to revive growth, sources say.”
Stefan Hoops, CEO of DWS Group, expresses optimism about the future of digital assets. The executive recently stated during an earnings call that the firm has begun looking at strategic partners and conducting due diligence on potential targets, including digital assets.
Falling digital asset prices could lead to “interesting opportunities” for DWS, he said.
Speaking of the bank’s strategy for the crypto industry, Hoops mentioned a plan to build or acquire “various specific Blockchain-related services.”
According to the Deutsche Digital Assets website, the company offers investors exposure to crypto assets through a variety of investment vehicles, ranging from passive funds to actively managed funds, as well as white-label services for asset managers.
The investment in cryptocurrency is reportedly one of DWS’s efforts to revive growth and restore its reputation, after allegations of tax fraud and greenwashing led to investigations in Germany and the United States.
Money Laundering Allegations Surrounded DWS Last Year
DWS Group, one of the leading asset managers, seems to be watching the digital asset market during a downturn. Since the last quarter of 2021, the bear market has taken over the markets, costing more than $1 trillion to capitalize.
The FTX implosion has also kept market gains in the red. That said, the reports also come after the May 2022 “greenwashing” allegations.
Last year, German investigators raided DWS over claims it misled clients about “green” investments. However, DWS reiterated its rejection of any misinformation from investors.
Prosecutors claimed they were investigating whistleblowers and news claims that DWS had engaged in “greenwashing.” Greenwashing is misrepresenting investments as “more sustainable” than they were.
Meanwhile, in Germany, DekaBank, one of the main securities service providers for the German Savings Banks Finance Group, is also considering cryptocurrencies.
BeInCrypto reported last week that DekaBank has partnered with METACO, a Swiss-based cryptocurrency company, to offer cryptocurrency-related services to institutions.
By Audy Castaneda
