Home
News
- 1 Deutsche Bank will facilitate the crypto custody services to institutional clients across the world.
- 2 For assistance, the German bank partnered with Swiss cryptocurrency firm Taurus.
Among many crucial laws of economics, one of “demand and supply” is the most frequent and important. If it were not for the demand of the customers to have cryptocurrencies, banks might not have catered to the supply. The growing influence of crypto assets is encouraging financial institutions to get their hands on the assets. Recently, another banking giant, Deutsche Bank, reported to start crypto custody services.
According to the Reuters report, the German multinational investment bank joins hands with Taurus, a Switzerland-based cryptocurrency firm, with the intention of facilitating custody services. The bank will provide services related to crypto and tokenized assets to institutional clients.
Deutsche Bank has no background or past experience in crypto and it will be the first for the institution to foray into the burgeoning asset class sector. As per the plan, the bank will keep a certain amount of cryptocurrencies available to their clients. Additionally, they will also be providing the tokenized versions of traditional financial assets, the spokesperson said.
Global head of securities and services at Deutsche Bank, Paul Maley, stated that the cryptocurrency sector is clearly visible to bring in assets worth trillions of dollars. Consequently, investors and institutional clients would be included in their priorities.
“Our focus is not just on cryptocurrencies, but on supporting our clients in the overall digital assets ecosystem. Our product design, and the nature of custody for clients, will make sure that there is not risk of contaminating the bank’s other activities,” he added.
Deutsche Bank Not Moving Ahead With Crypto Trading
The German investment banking firm is moving ahead with crypto custody services but it has no intentions to step into cryptocurrency trading.
Deutsche Bank filed for a crypto custody license in their homeland German in June this year.
The bank executive did not disclose the whole information about specific assets custody services but he said that corporate and institutional clients of the bank can take advantage of custody services on specific crypto assets and stablecoins. For the tokenized assets, the firm will facilitate the traditional financial securities in tokenized form.
Changing Perspectives of Traditional Finance Players for Crypto
In the past several months, traditional finance industry players have taken an interest in the burgeoning digital assets industry. From leading banking institutions providing crypto services to asset management giants seeking approval for spot Bitcoin ETF filings, the growing interest is clearly visible.
The trend is witnessing a change from considering cryptocurrencies yet another fraud scheme to recognizing its potential and seeking opportunities. The global cryptocurrency market holds over $1.1 Trillion worth of market capitalization and the expected growth potential is still up since the existing market cap is down below the already attained ceiling of over $3 Trillion.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
