DeFi CEO Says ‘No One Cares’ to Deutsche Bank Entry into BTC Custody

Julian Hosp, the CEO of DeFi business Cake Group, has shared a skeptical reaction to Deutsche Bank’s newly-launched bitcoin custody services for institutional clients. Responding to a post on X (Twitter) by Bitcoin Magazine announcing the bank’s new services, Hosp wrote “Sadly, no one cares”. In full, his response read,

And guess what… sadly no one cares… because everyone in Germany can already buy #bitcoin either with an ETF (that has literally ZERO volume) or on an exchange. All these banks entering the space, are not bringing in extra money or people. They are just re-routing existing… https://t.co/MMZHSbGB9U

— Dr. Julian Hosp (@julianhosp) September 15, 2023

The Cake Group CEO argued that German crypto investors can already acquire bitcoin via multiple channels. He said the available channels include buying bitcoin via exchange-traded funds (ETFs) with minimal trading volume and crypto exchanges.

Hosp suggested that the influx of traditional banks into the crypto arena may not substantially increase capital inflow or attract new participants. He believes the banks are merely rerouting the existing demand for digital assets. In his words:

All these banks entering the space are not bringing in extra money or people. They are just re-routing existing demand.

Meanwhile, Bitcoin Magazine disclosed that the move from the Deutsche Bank will empower the German banking giant to hold bitcoin directly on behalf of its clients. It added that the bank, which has in excess of $800bn of assets under management, will hold bitcoin for institutions alongside a limited number of digital assets.

Moreover, the magazine noted that development is a “first-time initiative” on German soil. Notably, Deutsche Bank will carry out the initiative in collaboration with Swiss crypto firm Taurus.

Deutsche Bank’s Global Head of Securities Services, Paul Maley, has underscored the growing significance of the digital asset space. Maley highlighted the potential of the sector to encompass assets worth trillions of dollars.

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