DWS, the Deutsche Bank asset management subsidiary, is mulling digital asset acquisitions to take advantage of lower prices following the crypto crash and collapse of FTX. Two potential targets in its sights are Deutsche Digital Assets and Tradias, Bloomberg reports citing insider sources.
This is unlikely to be a pure cryptocurrency play. In a December presentation, DWS mentioned plans to launch a Euro stablecoin and become THE Tokenizer for both tokenized real world assets and funds that invest in tokens.
Asset manager Deutsche Digital Assets was formerly known as Iconic and manages exchange traded products for Bitcoin, Ethereum, EOS and Apecoin, as well as other crypto funds.
Tradias is a subsidiary of Bankhaus Scheich, whose CEO told Bloomberg last year that it was using the crypto winter to expand its headcount. He mentioned that banks are focused on cryptocurrency as well as the tokenization of real world assets, which might include stocks, bonds and real estate. Tradias does both.
Additionally, DWS has reportedly talked about collaborating with US-based asset manager Galaxy Digital, headed in Europe by former SDX CEO Tim Grant.
Last May, Deutsche Bank and DWS were raided over allegations of greenwashing. CEO Asoka Woehrmann was replaced by Stefan Hoops, who previously led corporate banking at Deutsche Bank. According to the latest figures, DWS assets under management fell by €106 billion ($114bn) in 2022 to €821 billion ($885bn).
Numerous asset managers around the globe are eyeing the potential of blockchain and digital assets. They include BlackRock, KKR, Apollo, abrdn and Hamilton Lane.