Deutsche Bank Partners with Taurus to Launch Custody Service for Institutional Clients
Banking giant Deutsche Bank has announced a collaboration with crypto company Taurus to introduce a new custody service for its institutional clients. Recognizing the potential of Bitcoin (BTC), the bank aims to strengthen its presence in the emerging cryptocurrency sector.
In accordance with a report by Reuters, Deutsche Bank will hold Bitcoin along with real-world tokenized assets, which include commodities, equity, and other tangible assets represented digitally on a blockchain platform.
However, the banking institution clarifies that it currently has no intention to engage in any other cryptocurrency-related activities, such as launching a Bitcoin trading platform. A spokesperson from Deutsche Bank stated this in response to the report.
Back in 2020, Deutsche Bank had revealed its plans to develop a crypto trading platform. The announcement came during a time when Bitcoin and other cryptocurrencies were experiencing a significant surge in value, reaching an all-time high of $69,000.
Nevertheless, the prolonged “Crypto Winter,” the collapse of prominent crypto exchanges, and the prevailing high-interest rates environment may have deterred the bank’s leadership from pursuing this direction. Instead, they have opted for custody services as a more secure and viable alternative to enter the nascent asset class.
Multiple banking institutions across the globe have already launched their own crypto custody platforms, including BNY Mellon and Standard Chartered. According to Paul Maley, the Global Head of Securities Services for Deutsche Bank:
“As the digital asset space is expected to encompass trillions of dollars of assets, it’s bound to be seen as one of the priorities for investors and corporations alike. Our focus is not just on cryptocurrencies, but supporting our clients in the overall digital assets ecosystem.”
Maley further emphasizes that regulatory caution in the crypto sector has been reinforced by warnings from US regulators. The US Securities and Exchange Commission (SEC) has taken an assertive approach to regulate the asset class.
Deutsche Bank has also received warnings from US regulators regarding potential liquidity issues that could negatively impact the crypto sector. In response, the bank ensures that their product design and custody arrangement for clients mitigate any risks that may affect the bank’s other activities.
At the time of writing, Bitcoin (BTC) is trading at $26,500, with a 2% profit in the last 24 hours.
Cover image from Unsplash, Chart from Tradingview
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
View J-S Tremblay website
