Deutsche Bank, a prominent financial institution based in Germany, is gearing up to offer cryptocurrency custody options to its customers through a strategic partnership with the cryptocurrency infrastructure platform, Taurus. This move comes on the heels of Deutsche Bank’s participation in a $65 million series B fundraising round for Taurus in February 2023, marking a significant step into the world of digital assets.
Deutsche Bank participated in a $65 Series B funding for Taurus
Taurus, a Switzerland-based company, specializes in providing enterprise-grade infrastructure for various aspects of the cryptocurrency and digital asset space. Their offerings encompass services such as issuing digital assets, managing custody solutions, and facilitating cryptocurrency trading. Notably, Taurus also supports the handling of nonfungible tokens (NFTs) and other digital assets, making it a comprehensive player in the blockchain ecosystem. The partnership between Deutsche Bank and Taurus did not materialize overnight. According to Lamine Brahimi, one of Taurus’s co-founders, the collaboration underwent a rigorous and meticulous due diligence process.
This thorough evaluation began in late 2021 and concluded in 2022, with Taurus emerging victorious in securing the partnership several quarters ago. Deutsche Bank’s foray into the cryptocurrency space has been a gradual process, with the institution actively exploring ways to offer cryptocurrency custody and trading services to its clients over the past three years. In June 2023, the bank took a significant step by applying for a digital asset custody license from Germany’s financial regulator, BaFin.
This regulatory move signaled Deutsche Bank’s commitment to providing its customers with access to cryptocurrency markets and digital assets. Importantly, the partnership between Deutsche Bank and Taurus is not limited to a specific region. It is designed to be a global collaboration, with Taurus delivering custody and tokenization technology that aligns with local regulatory requirements in various jurisdictions. Paul Maley, the Head of Global Securities Services at Deutsche Bank, emphasized the growth potential of the cryptocurrency space, predicting that it could evolve into a market with trillions of dollars in assets.
Expanding horizons in the cryptocurrency market
Recognizing this trend, the bank aims to position itself to cater to the needs and demands of both individual investors and institutional clients seeking exposure to the cryptocurrency asset class. In parallel with these developments, Deutsche Bank’s asset management arm, DWS Group, explored opportunities to invest in two different cryptocurrency firms based in Germany in February 2023. These potential investments included considering partnerships with Deutsche Digital Assets, a provider of crypto exchange-traded products, and Tradias, a market maker platform.
Deutsche Bank’s global reach extends beyond Europe, as evidenced by its collaboration with Deutsche Bank Singapore and Memento Blockchain. Together, they completed a proof-of-concept project called Project DAMA (Digital Assets Management Access), designed to facilitate the management of digital funds in tokenized securities. This initiative underscores the bank’s commitment to exploring innovative solutions and technologies in the digital asset space. Taurus, founded in Switzerland in 2018, raised substantial capital in its series B funding round, which was led by Credit Suisse and counted Deutsche Bank among its participants.
This not only highlights Deutsche Bank’s interest in the cryptocurrency sector but also suggests a growing enthusiasm for blockchain and digital assets within traditional financial institutions. The announcement of Taurus’s series B round provided insights into the company’s strategic goals, specifically its intention to serve “tier 1” banks in Europe. Lamine Brahimi, a co-founder of Taurus, revealed that the platform already serves nearly 30 banks, emphasizing that their offerings extend beyond cryptocurrencies to encompass the tokenization of various financial instruments, including equity and debt.
Deutsche Bank’s partnership with Taurus represents a significant milestone in the integration of traditional banking services with the burgeoning world of cryptocurrencies and digital assets. As the cryptocurrency market continues to expand and evolve, financial institutions are increasingly recognizing the need to provide their clients with secure and regulated access to these digital assets. Deutsche Bank’s move into cryptocurrency custody services is a testament to the growing acceptance and adoption of blockchain technology within the financial sector, setting the stage for further developments in this dynamic space.
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