Deutsche Bank Launches Crypto Custody Services
Deutsche Bank, a major banking institution with over $1.4 trillion in assets, has entered the world of crypto custody services. This move aligns Deutsche Bank with other banks like Standard Chartered, BNY Mellon, and Societe Generale that already offer similar solutions.
Deutsche Bank’s Partnership with Taurus
Deutsche Bank has announced a partnership with Swiss crypto firm Taurus to provide crypto custody services and address tokenized assets. The bank’s focus is not limited to cryptocurrencies but extends to supporting clients in the overall digital assets ecosystem.
According to Paul Maley from Deutsche Bank, “As the digital asset space is expected to encompass trillions of dollars of assets, it is bound to be seen as one of the priorities for investors and corporations alike.”
It’s important to note that Deutsche Bank had previously participated in Taurus’s $65 million fundraising round in February.
London’s HSBC Collaborates with Fireblocks
In addition to Deutsche Bank, London-based HSBC has partnered with crypto custody tech firm Fireblocks. Fireblocks has previously collaborated with banking leaders like BNY Mellon and BNP Paribas.
Deutsche Bank’s Stance on Crypto
Although Deutsche Bank clarified that it is not immediately entering into crypto trading, this contradicts a statement from a 2020 World Economic Forum paper. However, the bank had sought a crypto custody license in Germany earlier this year.
While historically skeptical of crypto, Deutsche Bank has shown consistent interest in blockchain technology and its benefits since 2017.
Skepticism Towards Crypto Persists
Despite the progress made by banks in embracing crypto, there is still widespread skepticism. Previous incidents such as the collapse of Terraform Labs’ TerraUSD (UST) and FTX’s implosion have cast a shadow of caution over traditional finance.
In March, a mid-tier banking crisis in the US implicated three banks with crypto associations, further tarnishing the image of crypto. Major financial institutions continue to weigh the risks associated with crypto, and the International Monetary Fund (IMF) recently unveiled a strategy to address its potential detrimental effects on the global economy.
Hot Take: Crypto’s Path to Reputation
The entry of major banks like Deutsche Bank into the world of crypto custody services signifies growing acceptance and recognition of digital assets. While skepticism still persists, it is evident that cryptocurrencies and blockchain technology are becoming priorities for investors and corporations.
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