In an intriguing turn of events, Deutsche Bank has partnered with cryptocurrency safekeeping specialist, Taurus, a Swiss startup, to set a solid foundation for digital asset custody and tokenization services. A testament to their initiative, Deutsche Bank revealed that they lodged for a crypto custody licence from BaFin, Germany’s financial regulator, back in June. This paves the way to a series of early 2021 plans the bank had shared involving a digital asset custody prototype, courtesy of a World Economic Forum report.
Undeniably, the crypto market in Germany is receiving the necessary regulatory heat, with fresh rules for firms to safeguard crypto assets taking the front row. Geographically expanding the picture, Europe’s decided itinerary of Markets in Crypto-Assets regulation (MiCA) results in a transparent playing field for incumbents in traditional finance to thrive in the world of digital assets.
On top of aligning with Taurus, Deutsche Bank invested in the Swiss startup during its $65 million Series B round in February, which also saw contributions from the likes of Credit Suisse, Arab Bank Switzerland, and Pictet Group. According to Lamine Brahimi, Taurus co-founder, Deutsche Bank initiated an evaluation of potential crypto custody firms at the end of 2021, ultimately selecting the Swiss startup sometime in 2022. Brahimi outlined that the association mainly revolves around cryptocurrencies, however, it isn’t restricted to that. With this partnership, Deutsche Bank validates the broader potential of tokenized financial assets.
Paul Maley, Deutsche Bank’s global head of securities services, envisions to create digital asset custody services that do not discriminate against any digital asset type. The intention is that it serves a broad spectrum of corporate and institutional clients. Initially, custody will be directed towards chosen cryptocurrencies and some stablecoins. Maley anticipates the inaugural wave of work to involve these selected cryptocurrencies and stablecoins.
In terms of regulatory landscapes across the globe, Paul Maley acknowledged a fair degree of diversity. While the regulatory climate outside the U.S, especially in Europe and Asia, has presented a more lucid picture, one can presume subsequent harmonization of crypto-regulatory frameworks can accelerate the global development and acceptance of digital assets. It is clear, therefore, that touchscreen ledgers aren’t just for the technologically savvy anymore. Even traditional financial institutions are muscling their way into the blockchain-powered future.
Source: Coindesk
