Deutsche Bank announced that it will collaborate with Swiss crypto company Taurus to offer custody of cryptocurrencies and tokenized assets to its corporate clients. This partnership means the bank can store a limited number of cryptocurrencies and tokenized versions of traditional financial assets for its customers, a Deutsche Bank spokesperson told Reuters.
The bank official emphasized that they are not in a rush for crypto trading. Deutsche Bank announced its crypto trading goals at the 2020 World Economic Forum event.
Paul Maley, head of global securities services at Deutsche Bank, stated that the digital asset space is growing rapidly and has become a priority for investors and companies. Maley underlined that the bank’s focus is not only on cryptocurrencies, but also on supporting customers in the overall digital asset ecosystem.
US Risk for Banks Providing Cryptocurrency Services
US regulators are warning banks to be wary of customer-related liquidity risks related to crypto. Maley said that Deutsche Bank approached this asset class cautiously and acted in accordance with the regulations.
Crypto markets have become the main agenda of financial regulators after a series of bankruptcies last year. Companies providing crypto services in the US and Europe have faced pressure. However, many mainstream financial firms see the potential for blockchain technology to be used in the buying, selling and clearing of traditional financial assets and continue to offer crypto custody services.
Examples of such financial giants are various banks such as Standard Chartered, BNY Mellon and Societe Generale.