Schwab and Deutsche Bank Expand Crypto Services to Retail and Institutional Clients
Key Summary
Two major banking giants, Charles Schwab and Deutsche Bank, are expanding their crypto services to retail and institutional clients. Schwab has opened direct crypto trading to its broader retail client base, while Deutsche Bank is preparing to launch institutional custody for Bitcoin and Ethereum. This move could further increase adoption of cryptocurrencies in the mainstream financial system.
Expanded Crypto Services
Less than two months after indicating that it will add SOL, LINK, and AVAX to its Schwab Crypto platform, Charles Schwab has opened direct crypto trading to its broader retail client base. At the same time, Deutsche Bank is reportedly preparing to launch institutional custody for the two largest digital assets, BTC and ETH.
Background
Schwab Opens Crypto Trading Broadly According to a recent report, the banking behemoth has opened Schwab Crypto to all eligible US retail clients, expanding a rollout that initially began with selected customers. The platform allows investors to hold and trade cryptocurrencies directly alongside stocks and other traditional investment products. Schwab Premier Bank serves as custodian, while Paxos handles trade execution and sub-custody.
It's worth noting, though, that crypto holdings are not covered by Securities Investor Protection Corporation protections in the same way as securities held in a conventional brokerage account.
Deutsche Bank Targets Institutional Clients
In another major adoption development from earlier this week, Deutsche Bank said it is preparing to launch its own digital-asset custody service in Germany within the next few weeks, as Reuters reported. The initial offering will support Bitcoin and Ethereum custody, before expanding into stablecoin transactions. The German banking giant also plans tokenized deposits and blockchain-based securities issuance, including digital bonds.
'I believe that, as the financial system, we will need to offer tokenized or blockchain solutions to our clients as additional services alongside our traditional ones but not necessarily to replace what we are doing today,' commented Gerald Podobnik, co-head of the bank.
Moreover, Deutsche Bank intends to move beyond Europe by expanding the business into major Asian financial centers next year as part of a broader push to capture growth in the digital economy.
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