Deutsche Bank Subsidiary Exploring Potential Investments in Crypto Firms
The DWS Group, a subsidiary of the renowned financial institution Deutsche Bank, is exploring potential investments in the cryptocurrency industry in an effort to recover from last year's global market downturn.
Negotiations are reportedly underway for the DWS Group CEO, Stefan Hoops, to obtain a minority stake in two Germany-based crypto firms: Deutsche Digital Assets, a cryptocurrency asset management firm, and Tradias, a digital assets trading company owned by Bankhaus Scheich.
Hoops stated in a recent earnings call that the present dip in the crypto market could present interesting investment opportunities for the DWS Group.
The company is striving to regain growth after experiencing $21.5 billion in outflows and a significant decrease in managed assets, totaling $114.8 billion in 2022.
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While no public comments have been made by DWS, Tradias, or Galaxy representatives, this move follows a trend among large banks and asset management companies entering the crypto market.
This includes BlackRock, the world’s largest asset management firm, which took over the management of a portion of Circle’s USDC reserves in November 2022, and JPMorgan, which filed a trademark for a new cryptocurrency wallet with the ability to exchange and transfer digital currencies.