Deutsche Bank’s Asset Management Arm to Invest in Crypto Firms

Deutsche Bank’s asset management arm, DWS, recently expressed interest in investing in two cryptocurrency firms.

The arm selected two German-based platforms in a bid it dubbed an “effort to revive growth and investor confidence.” Led by the group’s CEO, Stefan Hoops, talks are ongoing with Frankfurt-based crypto exchange Deutsche Digital Assets in a bid to purchase a minority stake.

According to reports, the second target is the market-making firm, Tradias. Many know the platform for selling confiscated cryptocurrency in a way that resulted in minimal volatility. Hoops is also in talks to purchase a minority stake.

DWS Arm Collaborates with Galaxy Digital

While sources prefer to remain anonymous, they claim that DWS is in talks with Galaxy Digital. Hoops is discussing potential ways to collaborate with Mike Novogratz’s firm.

During an earnings call last week, the DWS boss said he was assessing strategic partners and making the necessary moves on potential targets. he reiterated that the recent drop in crypto prices is another interesting opportunity.

The latest move comes as Hoops tries to restore customers’ trust in the arm after allegations of deception caused probes by US and German authorities. Both crypto firms on DWS’s radar have offered no reply as talks are ongoing.

With FTX collapse still fresh, concerns are also mounting about why Hoops is taking such steps. Nonetheless, he has been vocal about his stance on the industry and discusses ways to utilize blockchain and digital currency.

Blackrock Dabbles in Crypto

DWS is not the only financial institution looking to invest in the crypto industry. Asset management firm Blackrock has made several investments in the space over the last three months.

Bloomberg reported in December that BlackRock gave ailing Bitcoin miner Core Scientific a $17 million loan so that it may carry on with its business while going through bankruptcy.

In August 2022, it partnered with prominent cryptocurrency exchange Coinbase to provide institutional clients with cryptocurrency services.

Later, leading global asset manager BlackRock announced the launch of its iShares Blockchain Technology UCITS ETF (BLKC), a blockchain exchange-traded fund (ETF) designed to draw European investors.