2023-09-15 20:41:30
© Reuters. Deutsche Bank to Offer Cryptocurrency Custody and Tokenization Services
Blockmarket – Deutsche Bank, Germany’s largest bank by total assets and number of employees, announced last Thursday (14) a new partnership with Taurus (BVMF:), a Swiss startup specializing in cryptocurrency infrastructure. The main objective of this collaboration is to establish digital custody and tokenization services for institutional clients.
The advancement of traditional entities in the crypto world
Deutsche Bank had already signaled its interest in the world of cryptocurrencies. In June this year, the bank applied for a cryptocurrency custody license from Germany’s financial watchdog, BaFin. Additionally, in 2021, information about a bank’s digital asset custody prototype was highlighted in a World Economic Forum report.
The partnership with Taurus, however, solidifies Deutsche Bank’s entry into the cryptocurrency market. Taurus, founded in 2018 in Switzerland, is known for its enterprise-grade infrastructure that enables the issuance, management, custody and trading of cryptocurrencies, tokenized assets and other digital assets. Taurus co-founder, Lamine Brahimi, highlighted that the partnership was the result of a detailed due diligence process, which began at the end of 2021 and culminated in 2022.
The repercussions of the new offer
Firstly, it is important to highlight that the bank will only be able to hold a limited amount of cryptocurrencies for its customers, in addition to issuing tokenized versions of traditional financial assets. Furthermore, the bank’s plans for direct cryptocurrency trading were not disclosed.
Paul Maley, global head of securities services at Deutsche Bank, expressed optimism about the sector’s future. He predicts that the cryptocurrency space will grow to trillions of dollars in assets, becoming a priority for investors and institutions.
The bank’s team is acting cautiously, ensuring its services comply with regulations available for this asset class. Maley assured that the design of the product and the nature of custody for customers will ensure that there is no risk of contamination of the bank’s other activities. This is an important step towards legitimizing the crypto market within the world of traditional finance, and with increasing adoption, it is very likely that more banks will follow Deutsche Bank’s example.
The content Deutsche Bank will offer cryptocurrency custody and tokenization services appears first on Blockmarket.
#Deutsche #Bank #Offer #Cryptocurrency #Custody #Tokenization #Services #Blockmarket