Deutsche Bank has joined forces with Swiss startup Taurus, specializing in cryptocurrency security, to establish digital asset custody and tokenization services, as announced by the companies on Thursday. The move comes after Germany’s largest lender applied for a crypto custody license from the country’s financial regulator, BaFin, in June, media reports said.
Deutsche Bank’s interest in crypto custody dates back to early 2021 when details of a digital asset custody prototype were first disclosed in a report by the World Economic Forum.
The rollout of Germany’s regulatory framework for companies dealing with crypto assets, as well as Europe’s proposed Markets in Crypto-Assets regulation (MiCA), has provided traditional financial institutions with the clarity needed to explore the digital assets sector.
Deutsche Bank had previously invested in Taurus in February as part of a $65 million Series B funding round led by Credit Suisse, with participation from Arab Bank Switzerland and Pictet Group. According to Taurus co-founder Lamine Brahimi, Deutsche Bank’s due diligence process for potential crypto custody partners began at the end of 2021 and concluded in 2022.
“We secured the deal a few quarters ago, so the bank became a client and subsequently decided to acquire a stake in Taurus,” explained Brahimi in an interview with CoinDesk. “While the partnership primarily focuses on cryptocurrencies, our reputation extends beyond cryptocurrencies. Therefore, as the bank deems appropriate, it will have the capability to tokenize assets and offer asset servicing.”
Paul Maley, Deutsche Bank’s Global Head of Securities Services, stated that the plan is to develop digital asset custody services catering to a wide range of digital asset types for corporate and institutional clients. He added, “Initially, we will provide custody for select cryptocurrencies and some stablecoins. We anticipate the initial surge of activity will revolve around these chosen cryptocurrencies and stablecoins.
