Are the largest private companies in finance about to embrace cryptocurrencies? Deutsche Bank, Germany’s largest bank, has announced a partnership with Swiss firm Taurus to offer cryptocurrency custody services to its institutional clients. The German bank thus joins the giant French and Anglo-Saxon banks in this race for crypto-friendly services.
The first German bank in cryptos
Deutsche Bank, Germany’s largest bank in terms of financial capitalisation, reveals that it has moved closer to the cryptocurrency sector. With the help of Swiss firm Taurus, which specialises in digital assets, the financial company is preparing to open new services for its institutional clients.
We’re pleased to announce that Deutsche Bank has entered a global agreement with Taurus! Deutsche Bank will leverage Taurus custody and tokenization technology to manage cryptocurrencies, tokenized assets, and digital currencies.https://t.co/HRJx76NvWt pic.twitter.com/EhTB3gsJgF
– Taurus (@taurus_hq) September 14, 2023
We are pleased to announce that Deutsche Bank has signed a global agreement with Taurus! Deutsche Bank will leverage Taurus’ custody and tokenization technology to manage cryptocurrencies, tokenized assets and digital currencies. “
Beyond simply storing cryptocurrencies, Deutsche Bank is also opening up to the tokenisation of real-world assets (RWAs). As a result, the German bank is looking to innovate its services while responding to requests issued by its customers.
Why didn’t the bank enter the market sooner? Previously, the sharp rise in cryptocurrencies and subsequent depreciation did not offer a calm period in which to take a step back from these assets. Now, with multiple requests for Bitcoin spot ETFs including one from BlackRock, the financial firm is potentially more confident about these assets.
A growing need on the client side
Although the price of cryptocurrencies is still sluggish, interest in these assets is only growing on the institutional side. For Paul Maley, global head of securities services at Deutsche Bank, the main aim of this crypto-friendly approach is to meet the expectations of its clients:
As the digital assets sector is expected to encompass billions of dollars of assets, it will inevitably be seen as one of the priorities for investors and companies. […] Our focus is not just on cryptocurrencies, but also on supporting our clients across the digital asset ecosystem. “
In fact, Deutsche Bank has been looking to develop cryptocurrency-related services since 2020. During this year, it had spoken out about the potential launch of a dedicated crypto trading service at the World Economic Forum.
With its new services, the German company joins French giant Société Générale and Anglo-Saxon firms Standard Chartered and BNY Mellon in cryptocurrency storage. However, to regain its former glory, the Bitcoin (BTC) price will need a much more favourable economic situation.
