Deutsche Bank Partners with Taurus to Explore Crypto Custody and Tokenization

Deutsche Bank Collaborates with Taurus for Crypto Custody and Tokenization Services

Deutsche Bank has joined forces with Swiss startup Taurus, known for its expertise in cryptocurrency security, to establish digital asset custody and tokenization solutions, as announced by the companies. Germany’s largest bank had applied for a crypto custody license from BaFin, the country’s financial regulatory authority, back in June. This move is part of Deutsche Bank’s long-standing interest in crypto custody, dating back to early 2021 when details of a digital asset custody prototype emerged in a report by the World Economic Forum.

Germany’s regulatory framework for companies offering crypto asset custody services, along with Europe’s proposed Markets in Crypto-Assets regulation (MiCA), has provided traditional financial institutions with a clearer path to explore opportunities in the digital asset industry.

Deutsche Bank made a strategic investment in Taurus in February as part of a $65 million Series B funding round led by Credit Suisse. This funding round also included participation from Arab Bank Switzerland and Pictet Group. Lamine Brahimi, co-founder of Taurus, noted that Deutsche Bank’s evaluation of potential crypto custody partners began in late 2021 and concluded in 2022.

Brahimi explained in an interview that the partnership primarily focuses on cryptocurrencies, but Taurus is well-known for its capabilities beyond cryptocurrencies. Consequently, the bank will have the capacity to tokenize assets and provide asset servicing as needed.

Paul Maley, Global Head of Securities Services at Deutsche Bank, stated that the plan involves developing digital asset custody services for a wide range of digital assets tailored to corporate and institutional clients. Initially, the bank intends to offer custody services for selected cryptocurrencies and certain stablecoins. Maley anticipates the initial surge of activity will center around these specific digital assets but sees potential in the broader trend of tokenized financial assets.

Regarding variations in international regulations, Maley acknowledged that regulatory clarity, particularly in Europe and Asia, has benefited market participants outside the United States, providing them with more certainty in these jurisdictions.