Key Takeaways:
- Deutsche Bank collaborates with Taurus to enter crypto custody and tokenization.
- European regulations enable traditional finance’s entry into the digital asset industry.
- The ambitious plan includes custody for cryptocurrencies, stablecoins, and tokenized assets.
LUCKNOW (CoinChapter.com) — Deutsche Bank, Germany’s financial giant with assets value of $1.4 trillion, has partnered with Swiss startup Taurus. The collaboration aims to offer various services, including cryptocurrency custody and tokenization solutions.
Taurus, a Swiss startup renowned for its expertise in cryptocurrency safekeeping, announced this collaboration on September 14.
Taurus co-founder Lamine Brahimi said the collaboration underwent a “thorough and detailed selection and due diligence process” before Deutsche Bank decided to utilize its enterprise-grade infrastructure technology.
“It started at the end of 2021 and ended somewhere in 2022. We won the deal a couple of quarters ago,” said Lamine Brahimi.
Although Deutsche Bank’s move into crypto custody is evident, the institution has clarified that it currently has no immediate intentions to participate in crypto trading, despite its earlier mention of such plans in a 2020 World Economic Forum document.
Deutsche Bank’s Crypto Custody Plans and Investment in Taurus
In June, the bank applied for a crypto custody license from the country’s financial regulator, BaFin. This move followed the bank’s interest in digital asset custody, which first surfaced in early 2021 when the World Economic Forum highlighted a prototype for such custody.
The evolution of European regulatory frameworks, particularly Germany’s rules for crypto asset custody and the proposed Markets in Crypto-Assets regulation (MiCA), has provided traditional financial organizations like Deutsche Bank with a clear path to explore the digital assets sector.
Deutsche Bank’s commitment to this new venture was underscored by its investment in Taurus in February. This investment was part of a substantial $65 million Series B funding round led by Credit Suisse, featuring participation from Arab Bank Switzerland and Pictet Group.
The Broader Scope of the Partnership
While the partnership with Taurus initially focuses on cryptocurrencies, it encompasses a broader scope. This means that Deutsche Bank will have the flexibility to tokenize various assets as appropriate.
Paul Maley, Deutsche Bank’s global head of securities services, outlined their vision for this collaboration. Initially, the bank plans to offer custody services for selected cryptocurrencies and stablecoins.
These will likely form the first wave of digital assets managed by the bank. However, they also foresee the potential in the broader adoption of tokenized financial assets.
“As the digital asset space is expected to encompass trillions of dollars of assets, it’s bound to be seen as one of the priorities for investors and corporations. As such, custodians must start adapting to support their clients,” Maley said in a press release.
