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Deutsche Bank’s DWS eyes 2 German crypto firms for investment: Report

Deutsche Digital Assets, a producer of crypto exchange-traded products, and market maker Tradias are among the companies talking with DWS Group.

The asset management arm of Deutsche Bank is allegedly in talks to invest in two German crypto firms.

According to a Feb. 8 Bloomberg story citing “people familiar with the situation,” DWS Group CEO Stefan Hoops is in discussions to purchase a minority share in Deutsche Digital Assets, a supplier of crypto exchange-traded products. It is also in discussions with Tradias, a market maker owned by Bankhaus Scheich, a conventional finance market maker.

Hoops is optimistic about the prospects afforded by digital assets.

During a recent earnings call, the CEO stated that DWS had “begun to analyze strategic partners and begin due diligence on possible purchases,” including digital assets.

According to him, the decline in digital asset values might result in “interesting prospects” for DWS.

Hoops indicated an intention to establish or buy “different particular blockchain-related services” while discussing the bank’s crypto strategy.

According to the company’s website, Deutsche Digital Assets provides investors with exposure to crypto assets via a number of investment vehicles ranging from passive to actively managed funds, as well as white-labeling services for asset managers.

Tradias is an over-the-counter (OTC) trading platform for cryptocurrencies and security tokens founded in 2020 by Bankhaus Scheich, which also offers crypto loans and liquidity services.

The crypto investment play is apparently part of DWS’s efforts to resurrect growth and rehabilitate its reputation following tax fraud and greenwashing charges that prompted investigations in Germany and the United States.

Frankfurt authorities searched DWS and Deutsche Bank offices in May 2022 after discovering “sufficient proof” that ESG rules were implemented only to a fraction of assets, contrary to their marketing promises.

Germany is regarded as having one of the nicest tax regimes for long-term crypto holders, since it levies no capital gains tax on the sale of crypto held for more than a year.

Germany is among the most favorable crypto economies, according to an October crypto rating that considers variables such as crypto outlook, clear crypto tax regulations, and more transparent regulatory communication.

 

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