Nikolas Sargeant
Deutsche Bank has decided to utilize Taurus’ custody and tokenization technology. This technology will enable them to effectively handle cryptocurrencies, tokenized assets, and digital assets.
Deutsche Bank and Taurus, a Swiss startup, have announced their collaboration in offering digital asset custody and tokenization services. This partnership aims to provide secure storage and management of cryptocurrencies.
In June, Deutsche Bank, the largest bank in Germany, announced that it had applied for a crypto custody license from BaFin, the country's financial watchdog. The bank had publicly expressed its interest in crypto custody since early 2021, with details of a digital asset custody prototype mentioned in a report by the World Economic Forum.
Germany has introduced rules for firms to custody crypto assets, giving traditional finance firms the clarity they need to enter the digital assets industry. Additionally, Europe's proposed MiCA regulation for Markets in Crypto-Assets provides further guidance for these firms.
In February, Deutsche Bank invested in Taurus during a Series B round worth $65 million. The funding round was led by Credit Suisse and also included Arab Bank Switzerland and Pictet Group. Deutsche Bank started conducting due diligence on crypto custody firms in late 2021 and completed it in 2022, according to Taurus co-founder Lamine Brahimi.
In an interview with CoinDesk, Brahimi stated that they won a deal a few quarters ago, which resulted in the bank becoming a client and deciding to take a stake in Taurus. The partnership primarily focuses on cryptocurrencies, but Taurus is known for its expertise beyond just cryptocurrencies. As a result, the bank will be able to tokenize assets and provide asset servicing as needed.
Paul Maley, the global head of securities services at Deutsche Bank, has announced plans to create digital asset custody services. These services will cater to a diverse range of digital asset types and will primarily target corporate and institutional clients.
Maley stated in an email that initially, their custody services will focus on selected cryptocurrencies and stablecoins. They anticipate the first wave of activity to revolve around these specific digital assets. However, they also recognize the potential in the broader rise of tokenized financial assets.
