Deutsche Bank Dives into Crypto: Major Partnership for Bitcoin and Digital Assets

By Kevin • September 16, 2023 3:36 pm • Comments

Deutsche Bank, the largest bank in Germany, has entered the cryptocurrency space by partnering with Swiss firm Taurus to offer crypto custody and tokenization services to its institutional clients.

This strategic move comes after Deutsche Bank participated in Taurus’s $65 million Series B funding round and applied for a digital asset license with German regulators earlier this year.

The partnership signifies Deutsche Bank’s commitment to the digital asset industry and its desire to adapt to the changing demands of consumers.

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With over €1.3 trillion (approximately $1.4 trillion) in assets under management, Deutsche Bank aims to integrate Taurus’s technology to manage various digital assets, including cryptocurrencies and tokenized assets, for its extensive client base.

Watchers.guru reports:

The banking behemoth manages more than €1.3 trillion, or $1.4 trillion, in assets. Subsequently, the partnership will allow Taurus to integrate its technology.

Specifically to enable the bank to manage digital currencies, tokenized assets, and cryptocurrencies for its array of clients.

Deutsche Bank told The Block that traditional finance needs to adapt to the changing demands of consumers.

Moreover, the bank’s Global Head of Securities Services, Paul Maley, said it was “bound to be seen as one of the priorities for investors” in a statement.”As such, custodians must start adapting to support their clients.”

Paul Maley, Global Head of Securities Services at Deutsche Bank, emphasized the importance of custodians adapting to support their clients in the evolving digital assets ecosystem.

He stated, “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.”

The partnership comes at a time when regulatory clarity in the cryptocurrency industry is improving globally. Governments and financial regulators are working to establish clear guidelines for the use and trading of digital assets, making it an opportune moment for traditional financial institutions like Deutsche Bank to step into the space.

Deutsche Bank’s approach to the digital asset market is cautious, ensuring compliance with regulations and minimizing risks to its other activities.

BitcoinMagazine reports:

The announcement also comes at a time when regulatory clarity around the industry is improving. Governments and financial regulators worldwide have been working to establish clear guidelines for the use and trading of digital assets.

According to the report, Deutsche Bank is proceeding “cautiously and in line with the spirit and the letter of the regulations governing this asset class.” Maley went on to further explain that “Our product design, and the nature of custody for clients, will make sure that there isn’t the risk of contaminating the bank’s other activities.”

Bitcoin continues to gain momentum and recognition as a legitimate asset class, with the asset becoming a very attractive investment option for hedge funds, family offices, and other institutional investors.

Deutsche Bank’s decision to enter this market is seen as a strategic move to capture a share of this burgeoning market.

The bank aims to provide comprehensive support to its clients in the digital assets ecosystem beyond just cryptocurrencies.

Bitcoin and other cryptocurrencies have gained increasing recognition as legitimate asset classes, attracting interest from hedge funds, family offices, and institutional investors.

Deutsche Bank’s move into this market is strategic, positioning the bank to tap into the growing opportunities in the cryptocurrency and digital asset space while ensuring compliance and client security.

This partnership between Deutsche Bank and Taurus represents another significant milestone in the broader trend of traditional financial institutions embracing the digital asset industry, reflecting the increasing convergence between traditional finance and cryptocurrencies.

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