Deutsche Bank’s asset management arm is reportedly in discussions to invest in two German crypto companies.
According to a February 8 Bloomberg report, DWS Group CEO Stefan Hoops is currently in talks to buy a minority stake in Deutsche Digital Assets, a provider of crypto exchange products. It is also in talks with Tradias, a market maker company owned by Bankhaus Scheich – a traditional financial market maker.
Hoops has been bullish on the opportunities presented in the digital asset space.
During a recent earnings call, the executive said that DWS has “begun to evaluate strategic partners and begin due diligence on potential targets” where it expects to acquire space, including digital assets.
The decline in digital asset prices could lead to “interesting opportunities” for DWS, he said.
Speaking about the bank’s strategy for the crypto industry, Hoops mentioned plans to build or acquire “various services related to certain blockchains.”
According to the Deutsche Digital Assets website, the company offers investors crypto assets through a variety of investment vehicles, ranging from passive to actively managed funds, as well as white-label services for asset managers.
Tradias is an over-the-counter (OTC) trading platform for cryptocurrencies and security tokens created by Bankhaus Scheich in 2020, providing crypto loans and liquidity services.
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The crypto investment play reportedly comes amid DWS’ efforts to revive growth and regain its reputation after tax fraud and greenwashing allegations sparked investigations in Germany and the United States.
The offices of DWS and Deutsche Bank were raided in May 2022 by Frankfurt prosecutors, after finding “substantial evidence” that ESG standards only apply to a minority of assets, contrary to marketing claims.
Germany is considered one of the friendliest tax regimes for long-term crypto holders, as the country charges zero capital gains tax on the sale of crypto that has been held for more than a year.
According to the October crypto ranking that evaluates factors such as crypto prospects, clear crypto tax rules, and more transparent regulatory communication, Germany is among the most favorable crypto economies.