Financial giant Deutsche Bank eyes crypto custody, tokenization

“We expect to see more and more traditional assets and cash payments eventually come on-chain,” bank executive tells Blockworks

article-image

24K-Production/Shutterstock modified by Blockworks

share

Another traditional finance giant is wading into the crypto space.

Deutsche Bank is set to establish digital asset custody and tokenization services via a new partnership with Switzerland-based Taurus — a firm that offers infrastructure to issue, custody and trade crypto, tokenized assets and NFTs. 

“The market has evolved to an extent where we see partnership opportunities key to developing the products and services that our clients are demanding,” Paul Maley, head of Deutsche Bank’s securities services, told Blockworks in an email. 

Deutsche Bank looks to initially offer custody of “selected cryptocurrencies and some stablecoins” for corporate and institutional clients in the German company’s “home market regions,” the executive added — though he did not name specific assets.

On the tokenization front, the firm aims to first tokenize traditional financial securities.

Read more: TradFi, DeFi convergence continues through tokenizing real-world assets

BlackRock CEO Larry Fink said last year that the tokenization of securities is “the next generation for markets.” TradFi firms such as JPMorgan, Goldman Sachs and Franklin Templeton have been busy in recent years and months exploring the tokenization space.

“We expect to see more and more traditional assets and cash payments eventually come on-chain,” Maley said. “Positioning ourselves for the future is our primary focus and we are working on a select number of projects to develop our capabilities.”

A  journey into the space 

Deutsche Bank participated in Taurus’ $65 million funding round in February — a fundraise led by fellow traditional financial giant Credit Suisse. 

Taurus co-founder Lamine Brahimi told Blockworks at the time that Credit Suisse and Deutsche Bank have integrated its tech, or planned to — noting there would be “landmark transactions” in the coming months.  

Teaming up with Taurus also comes after Deutsche Bank applied to Germany’s financial regulator in June to provide custody services for cryptocurrencies.

The latest partnership reflects “a natural extension” of Deutsche Bank initiatives laid out in a December 2020 report by the World Economic Forum’s Global Future Council on Cryptocurrencies. the company noted in a Thursday news release.

Deutsche Bank said its aim at the time was to create a custody platform for institutional clients that would “introduce a secure connected bridge between digital assets and a customer’s traditional banking services.”  

The bank planned to manage various digital assets and fiat holdings on one platform and allow clients to access those assets via “an institutional-grade hot [or] cold storage solution with insurance-grade protection.”

“We are pleased to implement this global partnership with Deutsche Bank and look forward to supporting the bank in launching digital assets and DLT-based products and services across several booking centers,” Brahimi said in a Thursday statement. 


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Avail.jpg

Research

Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.

article-image

The Bitcoin halving is a spectacle that only comes round once every four years

article-image

The SEC alleges that Justin Sun spent nearly 400 days in the US from 2017 to 2019

article-image

Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself

article-image

While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space

article-image

Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow

article-image

Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving