Digital assets: Deutsche Bank taps Taurus’ custody, tokenisation services

Deutsche Bank has partnered with Taurus, a Swiss-based digital asset infrastructure provider, with the aim of leveraging custody and tokenisation technology to manage cryptocurrencies, tokenised assets and digital currencies, according to Taurus’ announcement.

As the digital asset space is expected to encompass trillions of dollars of assets, it’s bound to be seen as one of the priorities for investors and corporations alike - Paul Maley, Deutsche Bank

‘As the digital asset space is expected to encompass trillions of dollars of assets, it’s bound to be seen as one of the priorities for investors and corporations alike,’ said Paul Maley (right), global head of securities services at Deutsche Bank. ‘As such, custodians must start adapting to support their clients.’

The latest development came after Taurus’ integration to the Ethereum’s scaling platform Polygon blockchain across its custody and tokenisation platform in June in a move to allow banks, brands, and issuers to issue, book and service any tokenised assets via Polygon in a fully automated way.

Earlier this year, Deutsche Bank participated in Taurus’ US$65m Series B funding round alongside Credit Suisse, Pictet Group, and Arab Bank Switzerland.

Talos unveils crypto options trading

Talos, a US provider of institutional digital asset trading technology, has announced the launch of a partnership with cryptocurrency derivatives exchange Deribit to offer options trading on its platform as it seeks to extend tradeable assets for its clients.

The integration between Talos and Deribit allows institutional traders in select jurisdictions to access the exchange’s options liquidity through a new Talos interface designed for institutional options traders.

The launch will provide clients with a ‘single interface’ to manage their cryptocurrency portfolio, including spot, futures, perpetual and options, with advanced execution tools initially including limit and pegged orders and an Iceberg algo.

‘With the full Deribit options chain now at their fingertips, Talos clients can unlock a myriad of strategic possibilities, allowing them to effectively manage risk, enhance portfolio diversification, and capitalise on the immense potential of crypto,’ said Neelabh Dixit (right), commercial product manager, derivatives at Talos.

In May 2022, Talos announced a US$105m Series B funding round backed by Citi, Wells Fargo, and BNY Mellon, among others, that brought the value of the company to US$1.25 billion. It will use this capital to scale and diversify its digital asset platform that powers both buy-side and sell-side firms, as well as accelerating expansion into Apac and Europe.

Singapore tokenisation platform eyes Middle East

Singapore’s ADDX has unveiled plans to expand into the Middle East and North Africa (MENA).

The regulated tokenisation platform and private exchange has raised US$140 million in venture capital, primarily from several major Asian financial institutions including the Singapore Exchange (SGX) and the Stock Exchange of Thailand (SET), to expand into MENA to help pre-IPO companies leverage blockchain to raise funds.

‘It offers the ability to strengthen the economic connection and flow of investment capital between key APAC and Middle Eastern markets while fostering the growth and expansion of strategically important MSMEs across the region,’ said Danny Toe (right), founder and Group CEO of ADDX.

ADDX has been one of the most prolific tokenisation platforms, listing more than 80 deals so far including pre-IPO companies. It has also facilitated a US$100 million bond issuance for SingTel, and several asset managers issued funds using the platform. Other listed assets on the platform range from private equity and venture capital to funds, real estate and structured products.

Some of its issuing partners include Hamilton Lane, Partners Group, Investcorp, Singtel, UOB, CGS-CIMB, as well as Temasek-owned entities.

XBT Provider leads as cryptocurrency ETP provider

Stockholm-based XBT Provider dominates the world’s cryptocurrency exchange-traded products (ETPs) landscape, with four of its ETPs ranking as the world’s largest 25 crypto ETPs by total assets, according to analysis from crypto market data aggregator CoinGecko.

These four ETPs alone are all exchange-traded notes (ETNs) and collected US$7.8 billion in total assets. These account for 52% of all top 25 ETPs’ total assets as of 11 September, stated CoinGecko's analysis.

The largest cryptocurrency ETP is XBT Provider’s Bitcoin Tracker One (COINXBT), with a total asset size of US$4.4 billion. COINXBT is nearly 72% larger than the second-ranked US$2.6 billion Ethereum Tracker One (COINETH), also from XBT Provider, according to CoinGecko.

Meanwhile, Hashdex Nasdaq Crypto Index FI (HASH11), with total assets of US$1.1 billion, became the top cryptocurrency ETF by asset.

The cryptocurrency ETP rankings include nine exchange-traded funds (ETFs), five ETNs, eight exchange-traded commodities (ETCs), two closed-end funds, and one investment trust.

Franklin Templeton joins race to offer spot bitcoin ETF

The US-based asset manager, led by president and CEO Jenny Johnson (right), has joined the likes of Blackrock and Fidelity, becoming the latest firm filing for a spot Bitcoin ETF with the US Securities and Exchange Commission (SEC).

According to the filing, the fund would be structured as a trust, while Coinbase would act as custody and Bank of New York Mellon as cash custodian and administrator. The shares would be listed and traded on the Cboe BZX Exchange.

The asset manager’s application came after the SEC delayed the decision on several such ETF applications on 31 August. The US regulatory agency will face its next deadline to respond to an application on 16 October.

London-based Jacobi Asset Management listed Europe's first spot Bitcoin ETF on Euronext Amsterdam last month.

Genesis shuts all crypto trading services, including derivatives trading

US crypto firm Genesis, a subsidiary of Digital Currency Group, has shut down all trading operations, including its international spot and derivatives trading operations, according to media reports.

The decision came just a week after it decided to close its US desk. The firm stated all trades must be settled by 21 September, and all remaining open accounts will be closed end on the 30.

The firm launched its derivatives trading desk in May 2020, to trade both cleared and bilateral over-the-counter options and forwards.

Genesis’ lending division filed for Chapter 11 bankruptcy protection in New York in January this year.

Main image: Laymanzoom/Adobe Stock.