Deutsche Bank Eyes Crypto Waters—Stablecoins and Tokenized Deposits on the Table

Germany's banking giant dips its toes into blockchain—because nothing says 'innovation' like a 150-year-old institution chasing digital trends.

Sources say Deutsche is exploring stablecoin issuance and tokenized deposits, hedging its bets as traditional finance scrambles to stay relevant. Will this move legitimize crypto or just add another layer of bureaucratic bloat? Only time—and maybe a few regulatory hiccups—will tell.

European banks and major players drive stablecoin innovation and adoption

According to Bloomberg News, Banco Santander SA is reportedly in the early stages of its plans to launch a stablecoin and offer cryptocurrency access to retail clients via its digital bank.

Deutsche Bank’s asset management arm, DWS Group, has teamed up with Dutch market maker Flow Traders Ltd. and crypto fund manager Galaxy Digital Holdings Ltd. to create a euro-denominated token.

“I see a role for a European stablecoin or collaboration among European banks to develop one, particularly for settlement in a digital economy,” said ING Groep NV CEO Steven van Rijswijk in a recent interview. However, he noted that the Amsterdam-based lender currently has no public plans to announce.

Early client adoption is emerging in payments. JPMorgan Chase & Co. reports that its Kinexys network processes over $2 billion in daily transactions on average, following a tenfold increase in volumes last year. However, this still represents a small fraction of JPMorgan’s overall daily payment processing of roughly $10 trillion.

Last year, Deutsche Bank invested strategically in Partior, a blockchain-based cross-border payments and settlement company. The Frankfurt-based bank is also involved in Project Agorá, an initiative led by the Bank of International Settlements and various central banks to explore how tokenization can improve wholesale cross-border payments. In 2023, Deutsche Bank partnered with Swiss blockchain firm Taurus to develop digital-asset custody services for institutional clients.

Big tech accelerates digital token adoption

Growing momentum for United States stablecoin regulation is reportedly pushing major tech firms to explore digital token integration. The “Guiding and Establishing National Innovation for US Stablecoins Act,” or the GENIUS Act, is a key development encouraging companies to dive deeper into digital assets.

The bill seeks to provide a regulatory framework for stablecoins and their issuers in the country but has been met with debate about Big Tech’s potential participation in the crypto industry.

According to The New York Times, Republican Senator Josh Hawley recently said he WOULD vote against the bill in its current form as it would allow tech companies to issue digital currencies that would compete with the dollar.

In response, Democrats are reportedly planning to introduce an amendment that would prohibit Big Tech companies from creating their own stablecoins, according to an informed source cited by the NYT.

This change would require tech firms operating in the US to rely on existing stablecoin issuers like Tether and Circle.

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