Deutsche Bank announced a partnership with Taurus, a cryptocurrency infrastructure platform, to offer cryptocurrency custody solutions to its customers.
In February 2023, Taurus, which led a $65 million Series B funding round, included other major financial institutions with Deutsche Bank as the leader. Taurus offers a platform for managing digital assets on various blockchains and operates a marketplace for tokenized assets and NFTs.
Lamine Brahimi, co-founder of Taurus, stated that Deutsche Bank selected the company after subjecting it to a rigorous due diligence process.
Deutsche Bank had been exploring the possibility of offering cryptocurrency custody and trading services for the past three years. In June 2023, the bank filed an application with BaFin, Germany’s financial regulator, for a digital asset custody license. If approved, the license will enable Deutsche Bank to grant its customers access to cryptocurrency markets and assets.
Besides providing custody and tokenization technology, Taurus will ensure that all services under the agreement comply with local regulations, according to Brahimi.
Paul Maley, head of global securities services at Deutsche Bank, views the cryptocurrency market as a rapidly growing one with enormous potential. He believes that the cryptocurrency space could potentially reach trillions of dollars in assets, making it a key focus area for both individual investors and institutional players.
Deutsche Bank’s asset management arm, DWS Group, has also been exploring potential investments in two other cryptocurrency companies. These companies are Deutsche Digital Assets, a crypto exchange-traded product provider, and Tradias, a market maker platform.
Additionally, Deutsche Bank Singapore has been exploring the potential of tokenized securities through its collaboration with Memento Blockchain. Together, the two companies have developed a proof-of-concept called Project DAMA, enabling the management of digital funds in tokenized securities.
Taurus, established in Switzerland in 2018, saw Swiss-based Credit Suisse lead its Series B funding round, including Deutsche Bank and Arab Bank Switzerland. This indicates significant interest from traditional finance banks.
However, with the Series B funding round, Taurus has clearly expressed its goal of serving tier 1 banks in Europe. According to Brahimi, the platform currently serves close to 30 banks, and its services extend beyond cryptocurrency to encompass the tokenization of equity, debt, and other financial products.
In a significant move, Deutsche Bank will utilize the services of Taurus, a cryptocurrency infrastructure platform, to provide its customers with cryptocurrency custody options.