FNZ Group is considering selling its German custody banking subsidiary, FNZ Bank Deutschland, for up to €500m ($579m), reported Bloomberg, citing sources familiar with the matter. 

The London-based digital wealth management firm has engaged advisers to explore a potential sale, though discussions remain at an early stage. 

FNZ acquired the German business, previously known as ebase, from Commerzbank in 2019 for €154m ($178m). 

The subsidiary provides platform services, including asset custody, to insurers, lenders, and wealth managers. 

FNZ Bank Deutschland currently oversees approximately €140bn in assets, according to information available on its website. 

The potential sale follows recent moves by FNZ to adjust its business strategy under Blythe Masters, who succeeded FNZ founder Adrian Durham as CEO last year. 

Masters indicated plans to divest assets that require significant regulatory capital or are not closely aligned with the company’s core wealth management platform. 

In a recent interview, Masters said that her intention is to focus on areas that directly support FNZ’s “core wealth platform capabilities”. 

FNZ, which was valued at $20bn in a 2022 funding round, recently secured $650m in new equity funding. 

It is the second major investment in the company by global investors this year.  

The firm’s leadership has signalled a shift towards prioritising profitable growth and streamlining operations. 

Blythe Masters previously held senior roles at JPMorgan Chase & Co., where she became the youngest woman to be appointed as managing director at 28 years. 

She has also served on the board of Credit Suisse when it was bought by UBS.