Deutsche Bank AG’s asset management arm, DWS Group, is currently in talks with two German cryptocurrency firms over minority stake acquisitions.

The investment is part of DWS’s efforts to revive growth and investor confidence, Bloomberg reported Wednesday, citing people familiar with the matter.

DWS Group to Invest in Two Crypto Firms

As per the report, DWS Group’s CEO Stefan Hoops plans to invest in Frankfurt-based crypto exchange-traded products provider Deutsche Digital Assets (DDA) and Bankhaus Scheich-owned digital asset trading firm Tradias.

Hoops is trying to mend DWS’s reputation after being sued by a German consumer group for greenwashing misrepresentations.

Greenwashing is a deceitful marketing strategy companies use to project themselves as environmentally friendly. Such companies spend more time and resources on marketing than on minimizing their environmental impact.

DWS Group Loses Over $100B in AUM

The allegations, coupled with last year’s bear market, caused a drop in DWS’ growth and investors’ trust as the management arm saw 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 strategy for blockchain and cryptocurrencies. During an earnings call with Bloomberg last week, Hoops affirmed that the asset manager had begun to assess strategic partners in the digital asset space and commenced due diligence on potential targets. He insisted that the recent decline in the industry could provide opportunities for DWS.

Notably, Hoops is a vocal advocate for novel technologies like digital currencies and recently created a plan for using them.

Traditional Firms Tap Into Crypto

Meanwhile, DWS Group is not the only traditional financial institution planning to explore the crypto industry. Entities such as Bank of New York Mellon Corp. (BNY Mellon) joined the crypto bandwagon years ago.

CryptoPotato reported in March 2022 that stablecoin issuer Circle tapped BNY Mellon as the primary custodian of its stablecoin USD Coin (USDC). The partnership helped bridge traditional financial services and the digital asset space.