In a significant move, Deutsche Bank (DBK:ETR), Germany's largest financial institution with $1.3 trillion in assets under management, has entered the digital asset space through a strategic partnership with Swiss fintech firm Taurus. The collaboration aims to establish digital asset custody and offer tokenization services to the bank's clientele. This agreement is already in effect, marking Deutsche Bank's strategic entry into the digital assets realm.
The partnership with Taurus, renowned for its enterprise-grade crypto services, will enable Deutsche Bank to manage cryptocurrencies, tokenized assets, and digital currencies. Taurus operates across four continents and ten countries and has been instrumental in providing services to a range of financial institutions including systemic banks, online banks, and crypto banks.
Lamine Brahimi, Taurus's managing partner and co-founder, expressed optimism about supporting Deutsche Bank in launching digital assets and distributed ledger technology (DLT) based products. The agreement is indicative of growing institutional interest in digital assets despite the market's seemingly muted enthusiasm.
Paul Maley, Global Head of Securities for Deutsche Bank, underscored the bank's expectations for the future of the tokenized economy. He anticipates a shift towards traditional assets and cash payments coming "on-chain," reflecting the potential for trillions of dollars worth of assets to be encompassed in the digital asset space. This shift is expected to prompt custodians to adapt their strategies to support their clients' evolving needs.
The entry of Deutsche Bank into the digital asset space is seen as a positive development that could bolster trust in crypto markets. This move follows recent high-profile fallouts in the industry, which have led to increased customer demand for regulated players like Deutsche Bank.
Earlier this year, Taurus secured $65 million in a Series B funding round led by Credit Suisse and Deutsche Bank. In early June, the firm also announced its integration with Polygon, providing its partner banks with the ability to issue, book, and service tokenized assets on the proof-of-stake network.
Deutsche Bank has reportedly been developing a crypto asset custody platform since 2020 and recently applied for a digital custody license in Germany.
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