Deutsche Bank Announces Partnership with Crypto Infrastructure Platform

  • Deutsche Bank is Germany’s largest bank, with $1.3 trillion in assets under management.
  • It applied for a digital custody license in Germany in June.
  • Deutsche Bank has been interested in a crypto asset custody platform since 2020.

German bank Deutsche Bank has announced a partnership with crypto infrastructure platform Taurus, which would enable it to offer crypto custody options to its customers. In addition, Deutsche will leverage Taurus’s platform to provide tokenization services.

Taurus co-founder Lamine Brahimi revealed that conversations about the partnership began in 2021 and ended in 2022. Brahimi, in a statement, noted that Taurus looks forward “to supporting the bank in launching digital assets and DLT-based products.” Interestingly, Deutsche Bank was part of the group of companies that helped finance Taurus’ $65 million Series B fundraising round earlier this year.

Brahimi remarked that the partnership with Deutsche Banks “shows that institutional interest is building,” defeating fears of a decline in interest. He added that Deutsche Bank’s presence in the crypto market will boost the adoption of digital assets.

Confirming the partnership, Paul Maley, head of global securities services at Deutsche Bank, noted that investors and institutions will likely prioritize cryptocurrencies as the industry could hit trillions of dollars in the coming years.

Maley said in a statement,

We believe the tokenized economy will continue to develop. We expect to see more and more traditional assets and cash payments eventually come on-chain. 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 alike. As such, custodians must start adapting to support their clients.

Maley explained that the goal is to create custody services for different digital assets for corporate and institutional clients. He said: 

In the first instance, we will offer custody for selected crypto currencies and some stablecoins. We expect the first wave of activity to be around these selected cryptocurrencies and stablecoins. However, we see the opportunity in the broader emergence of tokenized financial assets.

Deutsche Bank has been interested in providing its customers with crypto trading and custody services for the past three years. In June, Deutsche Bank applied for a custody license from the Federal Financial Supervisory Authority, Germany’s financial watchdog.

Deutsche Bank added that its activities in the digital world will be in line with the “spirit and the letter of the regulations governing this asset class.” In addition, Maley explained that the German bank will design its product and client custody to ensure that there is no risk of contamination of the bank’s other activities.

Bitcoin has grown into an extremely appealing investment choice for hedge funds, family-owned businesses, and other institutional investors as it continues to acquire momentum and legitimacy. There is no doubt that financial players like Deutsche Bank are strategically entering the sector to get a slice of the budding industry.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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