After Wednesday's news that HSBC reportedly partnered with crypto technology firm Fireblocks to expand into the digital space, another foreign banking giant is also showing interest in the crypto space. Deutsche Bank (NYSE: DB) is seeking to offer global crypto custody services through its Taurus partnership. PHOTO BY PIERRE BORTHIRY/UNSPLASH
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After Wednesday’s news that HSBC reportedly partnered with crypto technology firm Fireblocks to expand into the digital space, another foreign banking giant is also showing interest in the crypto space. Deutsche Bank (NYSE: DB) is seeking to offer global crypto custody services through its Taurus partnership.
Deutsche Bank announced that it will use Taurus’ custody and tokenization technology to manage cryptocurrencies, tokenized assets, and digital assets. Taurus is a Swiss startup specializing in cryptocurrency safekeeping, establishing digital asset custody and tokenization services. It serves around 30 banks with many of the deals going beyond cryptocurrencies which include tokenization of equity, debt, and other products.
In February 2023, the bank had invested in Taurus as part of a $65 million Series B funding round led by Credit Suisse. Deutsche undertook due diligence of prospective crypto custody firms from the end of 2021 to somewhere in 2022. Taurus had won a deal with DB a few quarters ago, after which it decided to take a stake in Taurus.
Global head of securities services, Paul Maley told CoinDesk that the collaboration aims to create digital asset custody solutions for diverse digital asset categories, catering to corporate and institutional clientele.
Germany has set out rules for firms who want to deal in the custody of crypto assets and has provided traditional financial firms the clarity to explore the digital assets industry. Also, Europe has a proposed regime for Markets in Crypto-Assets regulation.
In June 2023, DB applied for a crypto custody license from Germany’s financial watchdog, BaFin. The banking giant has been interested in offering cryptocurrency custody and trading services to its clients for the past three years.
This week also saw the launch of DB Investment Partners by Deutsche Bank for giving institutional and high-net-worth clients access to private credit investment opportunities. While operations would remain independent, Deutsche Bank will retain its existing balance sheet-driven private credit business.
Produced in association with Benzinga
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