Deutsche Bank Calls for Crypto Regulation, Says Bitcoin is ‘Too Big To Ignore’ ByJimmy AkiPRO INVESTOR Updated: 07 August 2021 Bitcoin’s increasing market capitalization has caused Deutsche Bank to list it as an important asset that is too important to ignore. The premier cryptocurrency has gained more than 1000% since falling below the $4,000 mark in March 2020. It is currently trading close to the $60,000 mark and has a market cap above $1 trillion. Deutsche Bank’s Stance On Bitcoin In a report released by the global banking giant, the Deutsche Bank analysts suggested that the Bitcoin price could continue to rise further as long as asset managers and companies continue to enter the market. The 18-page report titled “The Future of Payments: Series 2 Part III Bitcoins: Can the Tinkerbell Effect Become a Self-Fulfilling Prophecy?” discussed Bitcoin in its entirety. It also analyzed the key drivers of its historical price growth to a $1 trillion asset. Deutsche Bank expects governments to start regulating Bitcoin by the end of 2021. The bank stated that Bitcoin had become such an integral asset that central banks and governments now understand the need to start regulating Bitcoins and other cryptocurrencies. Deutsche Bank is convinced that Bitcoin will remain volatile due to its limited tradeability and liquidity. Although Bitcoin was created to serve as a medium of exchange, it has become more of a speculativce asset in recent years. According to the researcheres, less than 30% of transactional activity in Bitcoin is related to payments. Therefore, implying that most people hold cryptocurrency as an asset. Deutsche Bank Custody Plans Deutsche Bank is not ready to be left behind as it joins banks exploring digital assets or virtual currencies. In December, the bank announced its plans to develop a fully integrated custody platform designed to cater to institutional clients and their digital assets. The German lender’s plans were included in a report published by the World Economic Forum. The report indicated that Deutsche bank aims to achieve the milestone by partnering with brokerages and top crypto exchanges worldwide. The bank also disclosed its plans to create a trading and token issuance platform, bridging digital assets with traditional banking services, and managing the array of digital assets and fiat holdings in one easy-to-use platform. Bank of New York Mellon, the world’s largest custodian bank, has also announced its entry into the custody market. Last month, BNY Mellon said it would roll out a new digital custody unit later this year to help clients deal in digital assets, including cryptocurrencies. Meanwhile, Deutsche Bank’s previous survey released in January revealed that Bitcoin and U.S. tech stocks are viewed by investors as the biggest market bubbles right now. The survey was based on responses from 627 market professionals between Jan. 13-15.