Deutsche Bank Plans to Launch Crypto Custody Services by 2026

Deutsche Bank is preparing to enter the digital asset space by launching crypto custody services in 2026, according to the source. The move is part of the German banking giant’s broader efforts to modernize its financial infrastructure and respond to growing institutional demand for secure crypto services.

The planned crypto custody service will cater primarily to institutional investors and corporate clients, aiming to provide a regulated and secure environment for storing digital assets.

With this step, Deutsche Bank joins other major global banks exploring the crypto space, especially in secure custody—a critical requirement for large investors entering the market. The 2026 timeline indicates the bank is proceeding cautiously, focusing on building strong technical infrastructure and ensuring full compliance with evolving regulatory standards.

In addition to its custody plans, Deutsche Bank is developing a layer 2 (L2) network on Ethereum using ZKsync technology. This project, called Project Dama 2, is connected with Singapore’s Project Guardian and aims to improve transaction efficiency while addressing compliance concerns.

The L2 network addresses challenges such as avoiding transactions with sanctioned entities and managing blockchain updates like hard forks. A trial version of the system was released in November, with the full launch awaiting regulatory clearance.