Deutsche Financial institution AG’s asset administration arm, DWS Group, is at the moment in talks with two German cryptocurrency companies over minority stake acquisitions.
The funding is a part of DWS’s efforts to revive progress and investor confidence, Bloomberg reported Wednesday, citing folks aware of the matter.
DWS Group to Put money into Two Crypto Companies
As per the report, DWS Group’s CEO Stefan Hoops plans to put money into Frankfurt-based crypto exchange-traded merchandise supplier Deutsche Digital Property (DDA) and Bankhaus Scheich-owned digital asset buying and selling agency Tradias.
Hoops is making an attempt to fix DWS’s repute after being sued by a German shopper group for greenwashing misrepresentations.
Greenwashing is a deceitful advertising technique firms use to mission themselves as environmentally pleasant. Such firms spend extra time and assets on advertising than on minimizing their environmental influence.
DWS Group Loses Over $100B in AUM
The allegations, coupled with final 12 months’s bear market, brought about a drop in DWS’ progress and traders’ belief because the administration arm noticed outflows of roughly €20 billion ($21.5 billion) and a €107 billion ($108.5 billion).
The potential investments in DDA and Tradias align with DWS’s technique for blockchain and cryptocurrencies. Throughout an earnings name with Bloomberg final week, Hoops affirmed that the asset supervisor had begun to evaluate strategic companions within the digital asset area and commenced due diligence on potential targets. He insisted that the current decline within the trade may present alternatives for DWS.
Notably, Hoops is a vocal advocate for novel applied sciences like digital currencies and just lately created a plan for utilizing them.
Conventional Companies Faucet Into Crypto
In the meantime, DWS Group isn’t the one conventional monetary establishment planning to discover the crypto trade. Entities similar to Financial institution of New York Mellon Corp. (BNY Mellon) joined the crypto bandwagon years in the past.
CryptoPotato reported in March 2022 that stablecoin issuer Circle tapped BNY Mellon as the first custodian of its stablecoin USD Coin (USDC). The partnership helped bridge conventional monetary companies and the digital asset area.
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