Deutsche Bank plans global crypto custody offering

Deutsche Bank is poised to enter the realm of cryptocurrency custody services, sealing a strategic partnership with the cryptocurrency infrastructure platform, Taurus. This move underscores the German bank’s increasing commitment to exploring the expanding digital asset landscape.

Deutsche Bank had already demonstrated its interest in this arena by participating in a substantial $65 million Series B fundraising round for Taurus in February 2023. Taurus is renowned for its enterprise-grade infrastructure, enabling the issuance, management, custody, and trading of cryptocurrencies, tokenised assets, nonfungible tokens (NFTs), and various digital assets.

According to Lamine Brahimiaurus, Co-founder of Taurus, this partnership underwent a meticulous and comprehensive due diligence process, spanning from late 2021 to 2022, culminating in the successful conclusion of the deal a few quarters ago.

Deutsche Bank has been quietly formulating plans to offer cryptocurrency custody and trading services to its clientele over the past three years. This ambition took a formal step forward in June 2023 when the bank applied for a digital asset custody license from Germany’s financial regulator, BaFin. This marked a significant stride towards granting the bank’s customers access to cryptocurrency markets and assets.

Brahimiaurus affirmed that the partnership holds a global ambit, with Taurus geared to provide custody and tokenisation technology while adhering to local regulatory requisites.

Paul Maley, Head of Global Securities Services at Deutsche Bank, acknowledged the burgeoning potential of the cryptocurrency space, foreseeing its expansion to trillions of dollars in assets. He also underlined that it is poised to become a focal point of interest for investors and institutions alike.

Meanwhile, Deutsche Bank’s asset management arm, DWS Group, was reported to be in discussions in February 2023 to invest in two different German-based cryptocurrency firms, including Deutsche Digital Assets, a crypto exchange-traded product provider, and Tradias, a market maker platform.

Deutsche Bank Singapore, in collaboration with Memento Blockchain, recently concluded a proof-of-concept initiative known as Project DAMA (Digital Assets Management Access). This innovative project enables the management of digital funds within tokenised securities.

Founded in Switzerland in 2018, Taurus secured significant backing during its Series B funding round, led by Credit Suisse, and featuring prominent names such as Deutsche Bank and Arab Bank Switzerland. This participation signifies the considerable interest of traditional finance banks in Taurus’s vision. Notably, Taurus has set its sights on catering to “tier 1” banks in Europe. Brahimiaurus also revealed that the platform currently serves nearly 30 banks, with most engagements transcending the realm of cryptocurrencies, encompassing tokenisation of equity, debt, and other financial products.