German banking giant Deutsche Bank is aiming to roll out its crypto custody service in 2026 as part of its expansive strategy to modernize its financial infrastructure and tap into the growing digital asset market, Bloomberg reported Tuesday, citing sources with knowledge of the plan.

The bank plans to offer digital asset custody solutions as institutional demand for crypto services continues to grow among traditional financial institutions.

Deutsche Bank joins a growing number of major banks expanding into crypto custody, which involves securely storing digital assets on behalf of clients. The service is expected to target institutional investors and corporate clients seeking regulated custody solutions for their crypto holdings.

The 2026 timeline suggests Deutsche Bank is taking a measured approach to entering the digital asset space, allowing time to develop the necessary infrastructure and regulatory compliance frameworks.

The German bank recently announced it is developing an Ethereum layer 2 (L2) network employing ZKsync technology for enhanced transaction efficiency and compliance with financial regulations.

The L2 solution, part of Project Dama 2, linked with Singapore’s Project Guardian, addresses challenges faced by regulated lenders on public blockchains, such as payment risks to sanctioned entities and handling hard forks. A test version of this project was unveiled in November, with full launch pending regulatory approval.