Deutsche Bank Introduces Crypto Custodial Services for Institutional Clients

German banking giant Deutsche Bank is working with Swiss Taurus, which specializes in crypto safekeeping, to establish digital currency custodial solution and tokenization services.

This collaboration represents a substantial advancement in the merger of conventional banking services and the burgeoning realm of cryptocurrencies. Deutsche Bank, in partnership with Taurus, a prominent figure in the blockchain and cryptocurrency domain, intends to cater to the growing needs of institutional investors who seek reliable and comprehensive cryptocurrency custodial solutions.

Earlier in June 2023, the German banking giant had applied for the crypto custodian license from the country’s top financial watchdog, BaFin. The banking giant’s crypto custodial solutions stretch back to 2021, wherein it showcased the prototype of digital asset custody in a report of the World Economic Forum.

The introduction of regulations in Germany concerning the custody of crypto assets, and the broader framework proposed by Europe in the form of the Markets in Crypto-Assets regulation (MiCA), is offering traditional financial institutions the necessary clarity to venture into the digital assets sector.

Paul Maley, who serves as the Global Head of Securities Services at Deutsche Bank, has articulated the bank's strategy to establish comprehensive digital asset custody services catering to a diverse range of digital asset categories, primarily targeting corporate and institutional clients.

Maley said: In the first instance, we will offer custody for selected crypto currencies and some stablecoins. We expect the first wave of activity to be around these selected cryptocurrencies and stablecoins. However, we see the opportunity in the broader emergence of tokenized financial assets”.

Deutsche Bank's investment in Taurus, which occurred in February as part of a $65 million Series B funding round led by Credit Suisse, and featuring participation from Arab Bank Switzerland and Pictet Group, reflects this shift. Lamine Brahimi, co-founder of Taurus, noted that Deutsche Bank initiated its due diligence process for potential crypto custody partners in late 2021, concluding the process in 2022.

In an interview with CoinDesk, Brahimi said: We won the deal a couple of quarters ago, so the bank became a client and then decided to take a stake in Taurus. The partnership focuses on cryptocurrencies, but we are well known for going beyond cryptocurrencies. So, where it sees fit, the bank will be able to tokenize assets and provide asset servicing.”