Deutsche Bank studies custody and tokenization after reconsidering options. The financial giant is preparing new custody and tokenization services for its institutional clients. This comes as a result of an alliance with Taurus, a company based in Switzerland. Taurus offers infrastructure for the issuance, marketing and custody of digital assets, cryptocurrencies and NFTs. Deutsche Bank studies custody and tokenization to, mainly, offer the service to traditional financial assets. If this is carried out (and successfully), it would become one of the most important services and the financial giant would become one of the references in the service. According to information provided by Deutsche Bank to a digital medium, “selected cryptocurrencies and some stablecoins” will initially be offered to institutional and corporate clients.
Deutsche Bank studies custody and tokenization
To a digital medium, Paul Maley, head of securities services at the organization, commented: “The market has evolved to such an extent that we see key partnership opportunities to develop the products and services that our clients demand.” Deutsche Bank would not then be the only organization studying custody and tokenization. Last year, BlackRock CEO Larry Flink assured that the tokenization of securities would become the “next generation of markets.” Other companies such as JPMorgan, Goldman Sachs and Franklin Templeton began exploring tokenization over the past two years. “We expect to see more and more traditional assets and cash payments, eventually on-chain,” Maley commented. As expected, Deutsche Bank is looking to stay ahead by exploring new technologies and opportunities that align with its December 2020 report, calling them a “natural extension” of the company.
The beginning of a journey into the crypto space
In February, Deutsche Bank participated in Taurus’ $65 million financing round and since then, the strategic alliance has only grown stronger. This raising was carried out with the guidance of the Swiss giant Credit Suisse. This partnership follows Deutsche Bank’s request to Germany’s financial regulator for the possibility of providing custody services for cryptocurrencies. Focusing of course on its institutional and corporate clients. The organization assured that it would “introduce a secure connected bridge between digital assets and a customer’s traditional banking services.” This would allow them to manage and custody traditional fiat assets and allow them to access clients with a “cold storage solution.” “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 multiple booking centers.” This was published yesterday in a press release by Taurus co-founder Lamine Brahimi.
