Deutsche Bank Partners with Taurus for Crypto Custody and Tokenization

Deutsche Bank has established a strategic partnership with the Swiss startup Taurus, with the goal of employing their advanced technology to securely manage and tokenize a diverse array of digital assets, which includes cryptocurrencies and tokenized assets.

This collaboration signifies a substantial move for Deutsche Bank into the realm of cryptocurrency, as they endeavor to create services for the secure storage and tokenization of digital assets. This step follows Deutsche Bank's prior announcement in June regarding their application for a crypto custody license from Germany's regulatory authority, BaFin. The bank's initial interest in crypto custody was initially revealed in a report by the World Economic Forum in early 2021, which outlined a prototype for digital asset custody.

With Germany implementing regulations that require firms to offer secure solutions for safeguarding crypto assets, and with the proposed regulatory framework for Markets in Crypto-Assets (MiCA) in Europe, traditional financial institutions are gaining the clarity required to confidently explore the digital assets industry.

Deutsche Bank's investment in Taurus, which transpired in February, played a pivotal role in a Series B funding round that raised a total of $65 million. This funding round was spearheaded by Credit Suisse and saw the involvement of Arab Bank Switzerland and Pictet Group. Lamine Brahimi, one of Taurus' co-founders, disclosed that Deutsche Bank's comprehensive evaluation of potential partners in crypto custody commenced in late 2021 and concluded in 2022.

Brahimi elucidated in an interview with Bitsday, "We finalized the deal a few quarters ago, making the bank a client and subsequently deciding to acquire a stake in Taurus. While the primary focus of the partnership is on cryptocurrencies, our expertise extends beyond that. Therefore, where relevant, the bank will have the capability to tokenize assets and provide asset servicing."

Paul Maley, who serves as Deutsche Bank’s global head of securities services, outlined the strategic roadmap for developing digital asset custody services, catering to a diverse range of digital asset categories for both corporate and institutional clients.

"In the initial phase, we will extend custody services to select cryptocurrencies and a few stablecoins. We anticipate the initial surge in activity to revolve around these specific cryptocurrencies and stablecoins. Nevertheless, we envision potential in the broader adoption of tokenized financial assets," stated Maley in an email.

Regarding the differing regulatory landscapes internationally, Maley commented, "It's reasonable to affirm that the emergence of regulations beyond the U.S., particularly in Europe and Asia, has provided market participants with clearer guidelines in those jurisdictions."