Banking giant Deutsche Bank has partnered with Swiss-based crypto infrastructure firm Taurus to establish an institutional-grade digital asset custody service. Besides global crypto custody, Deutsche Bank will also use Taurus’ infrastructure to provide tokenization services to its clients.
Deutsche Bank Delves Into Crypto Custody
Germany’s largest bank, with assets worth $1.4 trillion, is launching crypto custody and tokenization services.
Deutsche Bank has entered into a global agreement with Taurus, a Swiss startup specializing in crypto safekeeping, to launch digital asset custody and tokenization services.
According to a Reuters report, the multinational bank will hold Bitcoin and real-world tokenized assets on behalf of its clients. Taurus co-founder Lamine Brahimi indicated that the collaboration underwent a “thorough and detailed selection and due diligence process” before Deutsche Bank decided to use its enterprise-grade infrastructure technology.
As ZyCrypto previously reported, the bank applied for a crypto custody license from Germany’s financial watchdog, BaFin, in June as it continues plans to gain a stronger foothold in the budding sector. Notably, Deutsche Bank has been planning to introduce a crypto custody service since late 2020, countering its report earlier that year, claiming that Bitcoin was “too volatile” to be considered a reliable store of value.
“We are pleased to implement this global partnership with Deutsche Bank and look forward to supporting the bank in launching digital assets and DLT-based products and services across several booking centers,” Taurus’ Brahimi stated.
Reuters notes that the bank will remain in the custody and tokenization business for now, with no immediate plans of implementing any other crypto-related activities. Simply put, a representative opined that the German bank clarified its lack of intention to introduce cryptocurrency trading.
Deutsche Bank nonetheless believes other legacy financial institutions ought to adapt, given the growth potential of the crypto market:
“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. Our focus is not just on cryptocurrencies, but supporting our clients in the overall digital assets ecosystem.”
Bitcoin was up 1.2% at press time to trade hands at $26,638.10, according to CoinGecko.