Deutsche Bank Partners with Taurus to Launch Custody Service
Banking giant Deutsche Bank has teamed up with crypto company Taurus to introduce a new custody service for its institutional clients. The collaboration aims to strengthen the bank’s position in the emerging crypto sector.
Deutsche Bank’s Plans for Bitcoin Trading
According to a report from Reuters, Deutsche Bank will provide custody services for Bitcoin and tokenized real-world assets. Tokenized assets are digital representations of commodities, equity, or other real-world assets supported by a blockchain platform.
However, the bank has clarified that it currently has no plans to engage in any other activities related to cryptocurrencies, such as launching a Bitcoin trading platform.
In 2020, Deutsche Bank announced its intention to launch a crypto trading platform. However, it seems that the bank’s leadership decided to focus on custody services instead, possibly due to the prolonged bear market, the collapse of crypto trading platforms, and the high-interest rates environment.
Other Banking Institutions in the Crypto Custody Space
Several other banking institutions worldwide have already launched their own crypto custody platforms, including BNY Mellon and Standard Chartered. Paul Maley, Global Head of Securities Services for Deutsche Bank, 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. Our focus is not just on cryptocurrencies, but supporting our clients in the overall digital assets ecosystem.”
Maley also mentioned that the bank is being cautious due to warnings from US regulators, particularly the US Securities and Exchange Commission (SEC), which has been actively regulating the crypto asset class.
Deutsche Bank received a warning from US regulators regarding potential liquidity issues in the crypto sector. The bank’s executive assured that their custody services are designed to comply with regulations and will not pose a risk to the bank’s other activities.
Bitcoin’s Current Price
As of now, Bitcoin (BTC) is trading at $26,500 with a 2% profit in the last 24 hours.
Cover image from Unsplash, Chart from Tradingview
