Deutsche Bank to invest in 2 crypto companies

Deutsche Bank AG’s asset management arm, DWS Group, is currently in talks with two German cryptocurrency firms for minority stake acquisitions.

The investment is part of DWS’s efforts to revive growth and investor confidence, Bloomberg mentionted Wednesday, according to people familiar with the matter.

DWS Group to invest in two crypto companies

According to the report, DWS Group CEO Stefan Hoops plans to invest in Frankfurt-based provider of tradable cryptocurrency products Deutsche Digital Assets (DDA) and Bankhaus Scheich-owned digital asset trading firm Tradias.

Hoops tries to improve DWS’s reputation afterwards is being sued by a German consumer group for false Greenwashing claims.

Greenwashing is a deceptive marketing strategy that companies use to promote themselves as environmentally friendly. Such companies spend more time and resources on marketing than on minimizing their environmental impact.

DWS Group loses over $100 billion in AUM

The allegations, combined with last year’s bear market, caused a drop in DWS’s growth and investor confidence as the management arm saw outflows of around 20 billion euros ($21.5 billion) and 107 billion euros ($108.5 billion dollars).

The potential investments in DDA and Tradias align with DWS’s blockchain and cryptocurrency strategy. During an earnings call with Bloomberg last week, Hoops confirmed that the asset manager had begun evaluating strategic partners in the digital asset space and had begun due diligence on potential targets. He insisted that the recent downturn in the industry could present opportunities for DWS.

In particular, Hoops is an advocate of new technologies such as digital currencies and recently created a plan to use them.

Traditional Companies Tap Into Crypto

Meanwhile, DWS Group is not the only traditional financial institution planning to explore the crypto industry. Entities such as Bank of New York Mellon Corp. (BNY Mellon) joined the crypto bandwagon years ago.

Hidden potato mentionted In March 2022, stablecoin issuer Circle engaged BNY Mellon as the primary custodian of its stablecoin USD Coin (USDC). The partnership has helped bridge traditional financial services and the digital asset space.

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