Deutsche Bank is taking a significant step into the world of cryptocurrency by collaborating with Taurus, a cryptocurrency infrastructure platform. The partnership aims to provide global cryptocurrency custody services to Deutsche Bank’s clients.
Investment in Taurus and Thorough Due Diligence
Deutsche Bank demonstrated its commitment to this venture by participating in a $65 million series B fundraising round for Taurus in February 2023. Taurus specializes in offering enterprise-grade infrastructure for cryptocurrency issuance, custody management, and trading, covering a wide range of digital assets, including nonfungible tokens (NFTs).
“It started, end of 2021 and ended somewhere in 2022. We won the deal a couple of quarters ago.”
According to Lamine Brahimi, co-founder of Taurus, the partnership underwent rigorous due diligence, spanning from late 2021 to 2022, before Deutsche Bank opted to utilize Taurus’s infrastructure services.
Global Scope and Regulatory Compliance
This collaboration is global in scale, with Taurus providing custody and tokenization technology while adhering to local regulatory requirements. Deutsche Bank’s pursuit of a digital asset custody license from Germany’s financial regulator, BaFin, in June 2023 underscores its determination to offer cryptocurrency access to its clientele.
Paul Maley, Head of Global Securities Services at Deutsche Bank, highlighted the growing significance of the cryptocurrency space, which is expected to encompass trillions of dollars in assets. The bank anticipates that cryptocurrency services will become a priority for both investors and institutions.
Taurus’s Strategic Position and Clientele
Taurus, established in Switzerland in 2018, is strategically positioned to cater to “tier 1” banks in Europe, as evident from its series B funding led by Credit Suisse and featuring Deutsche Bank. Beyond cryptocurrencies, Taurus serves nearly 30 banks, offering services that extend to the tokenization of equity, debt, and other financial products.
Deutsche Bank’s partnership with Taurus signals its commitment to embracing the evolving landscape of digital assets, positioning itself to meet the growing demand for cryptocurrency services among its clients.