Deutsche Bank dives into cryptocurrency custody and tokenization services

1 December 2023

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Deutsche Bank, the German multinational investment bank, recently announced a partnership with Swiss fintech company, Taurus, to launch digital asset custody and tokenization services.

This move signals growing institutional interest in cryptocurrency and blockchain technologies.

Deutsche Bank plans to utilize Taurus' infrastructure to offer these services to its clientele, according to a press release.

Lamine Brahimi, the co-founder and managing partner of Taurus, expressed his anticipation in supporting Deutsche Bank with the launch of digital assets and DLT-based products.

This sentiment was echoed by Paul Maley, Global Head of Securities for Deutsche Bank, who expects traditional assets and cash payments to increasingly transition "on-chain".

Maley also emphasized the importance of custodians adapting to the demands of the digital asset space, given its potential to encompass trillions of dollars.

Despite recent market skepticism towards crypto products, this agreement signifies a steady institutional interest in the asset class.

Brahimi believes that Deutsche Bank's entry into the crypto sphere will enhance trust in the market, especially in the aftermath of FTX's collapse.

Taurus, which operates across a broad spectrum of financial institutions, recently raised $65 million in a Series B round led by Credit Suisse and Deutsche Bank.

Deutsche Bank, with $1.3 trillion in assets under management, has recently applied for a digital custody license in Germany, marking its continuous efforts in the crypto domain since 2020.

The partnership agreement between Deutsche Bank and Taurus takes effect immediately. Read more here and here.

More on this topic:

HSBC, UK/Europe's largest bank, launches storage services for tokenized blockchain assets.

How is crypto forcing banks and institutions towards tokenization?

The great unbanking, a dangerous censorship game.

Tokenization: A new dawn for insurance, agriculture, and real estate.

Tokenization 101: The future of ownership?

What's The Difference Between Self-Managed Vs Custodial Crypto Services?

The choice of Deutsche Bank to enter the world of digital assets, partnering with Swiss fintech firm, Taurus, underlines a growing trend among institutional investors towards these assets.

This is yet another indicator that a major shift appears to be underway in the traditional banking industry.

The rapidly growing digital asset sector, predicted to hold trillions of dollars of assets in the future, will pressure custodians to meet client needs.

Cryptocurrencies like Zucoin give a new benchmark for digital transactions, marked by quick transaction settlements and no in-built transfer fees.

For Zucoin's Splitchain network, efficiency and settlement times are key.

Given the fast growth of the digital asset sector, it's critical for people to adjust as quickly as possible.

While some users may prefer the option of a digital storage service managed by institutions, many prefer to manage their digital assets themselves—provided it's easy and safe enough.

As we've seen, some banks are quick to limit and lock accounts, causing a growing uncertainty in their trust.

Zucoin, offering a self-custodial wallet, also known as a self-managed wallet, provides an alternative head-on.

If a self-managed wallet app is made easy enough to use, then there should be little need for many users to park their crypto with holding companies, such as banks.

One way banks might try to encourage the adoption of their services could be with interest-based returns if cryptocurrencies are deposited with a bank.

As crypto allows for all kinds of dynamic transactions—we call Smart Assets, where could this lead?

What could be the end goal for banks?

Perhaps it's to store all kinds of assets, not just financial assets?

With the Zucoin wallet app, the aim is to provide a solid and reliable option for users to manage their digital assets on their own.

Zucoin wallet users have control over their data and all transaction history, contacts, and private wallet keys, as they are stored locally on their devices.

It keeps things portable and more private.

The data can be easily exported and imported into other Zucoin-compatible wallet apps, as they emerge in the future when Zucoin open sources its systems, increasing decentralization.

However, developments like this from Deutsche and other major banks show there will clearly be an industry forming around managing and handling digital assets for others.

As more institutions like Deutsche Bank step into the world of cryptocurrencies, it may have the effect of elevating trust in the crypto industry itself.

Deutsche Bank's application for a digital custody license in Germany shows increasing institutional approval and regulation of digital assets.

Institutions are treating crypto seriously, knowing that it probably isn't going away—crypto is here to stay.

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All the best,
—Rob
MyZucoins

Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.