- Deutsche Bank collaborates with Swiss startup Taurus to pave the way for advanced crypto custody and tokenization services.
- This partnership underscores Deutsche Bank’s commitment to digital asset transformation, with a keen focus on cryptocurrencies and tokenized financial assets.
Deutsche Bank’s Digital Frontier with Taurus
Deutsche Bank, a colossal figure in Germany’s banking domain, has embarked on an exciting journey in the world of digital assets. Joining hands with Taurus, a Swiss vanguard in cryptocurrency preservation, the duo announced their plans on Thursday to set up a pioneering system for digital asset custody and tokenization.
The Backdrop of This Collaboration
As early as 2021, the ripples of Deutsche Bank’s interest in the crypto realm became evident. A report by the World Economic Forum disclosed details about a prototype for safeguarding digital assets. Furthermore, in June, the bank declared its intention to secure a crypto custody license from BaFin, Germany’s esteemed financial supervisory authority.
The landscape of regulations, especially in Germany, has undergone transformational changes. The meticulous framework set for crypto asset custody, in conjunction with the proposed guidelines under Europe’s Markets in Crypto-Assets regulation (MiCA), has paved the way for conventional finance entities to navigate and participate in the burgeoning digital asset sector.
In February, Deutsche Bank amplified its commitment to this digital transition by making a substantial investment in Taurus. This move was part of a substantial $65 million Series B funding round, steered by Credit Suisse and featuring other prominent contributors such as Arab Bank Switzerland and the Pictet Group. Reflecting on this partnership, Taurus’ co-founder Lamine Brahimi highlighted that their engagement with Deutsche Bank began towards 2021’s end and culminated in 2022.
“This alliance is not limited to cryptocurrencies. Deutsche Bank possesses the capability, through our partnership, to tokenize assets and facilitate asset servicing as they deem appropriate,”
Brahimi emphasized.
Paul Maley, Deutsche Bank’s global head of securities services, envisages a multi-dimensional approach to digital asset custody. Maley revealed that the initial phase would predominantly encompass selected cryptocurrencies and certain stablecoins. However, he acknowledged the broader horizon,
“We’re optimistic about the expansive possibilities presented by tokenized financial assets,”
he conveyed through an email correspondence.
Lastly, addressing the global regulatory framework, Maley remarked,
“Emerging regulations, especially outside the U.S., have undoubtedly provided market players with a clearer path in specific regions like Europe and Asia.”
