Crypto Industry News:
Deutsche Bank has joined the ever-growing ranks of large financial institutions researching cryptocurrency storage, aspiring to offer high-quality services to hedge funds that invest in this asset class.
According to a report by the World Economic Forum, host of the annual event in Davos, Switzerland, the Deutsche Bank Digital Asset Custody prototype aims to develop a fully integrated escrow platform for institutional clients and their digital assets, providing seamless connectivity to the wider cryptocurrency ecosystem.
In an excerpt on page 23 of the December 2020 report, Germany's largest bank says it plans to create a trading platform by combining digital assets with traditional banking services and managing a range of digital assets and fiat assets held in one easy-to-use platform.
Big banks are now announcing plans to roll out cryptocurrencies almost daily, and the Bank of New York Mellon, the world's largest trust bank, is joining the roster this week.
US banks have gained some regulatory clarity thanks to last year's interpretative letters from the Office of Currency Control. In Germany, companies are lining up to obtain special cryptocurrency storage licenses from the national regulator BaFIN.
The digital asset storage platform would be launched in stages. Ultimately, it would provide clients with the ability to buy and sell assets in partnership with top brokers (who act as concierges for hedge funds), issuers and proven exchanges.
The bank says it will also provide additional services such as tax, pricing and fund administration services, loans, staking and voting, and will provide an open banking platform to allow third-party providers to join.
Regarding the business model, the bank would start charging custody and then charge tokenization and trading fees. DB said it has completed the proof-of-concept and is aiming for a viable product in 2021, while examining global customer interest in the pilot initiative.
Technical Market Outlook:
The ETH/USD pair has been consolidating the recent gains after the market bounced from technical support located at $1,677. The market made a Pin Bar candlestick pattern as the levels below $1,700 were bought back up and the market is currently trading around the level of $1,800 again waiting for a trigger to resume the up trend. The next target for bulls is seen at the level of $1,900.
Weekly Pivot Points:
WR3 - $2,286
WR2 - $2,080
WR1 - $1,977
Weekly Pivot - $1,768
WS1 - $1,663
WS2 - $1,454
WS3 - $1,346
Trading Recommendations:
The up trend on the Ethereum continues and the next long term target for ETH/USD is seen at the level of $2,000, so any correction or local pull-back should be used to open the buy orders. Please notice, the up trend starting to go vertical, so the volatility will be higher than average. The bullish scenario is valid as long as the level of $830 is broken.