This is not just a Bitcoin exchange-traded fund like the one BlackRock, among many other money services firms, is looking for. Today, major establishments are looking to get into Bitcoin and become key players, especially in terms of custody. For instance, on Sept. 14, world-renowned German bank Deutsche Bank unveiled an agreement with Swiss crypto corporation Taurus to provide virtual asset tokenization and custody services to its institutional clients.
“With the virtual asset area expected to surround billions of dollars in assets, it will surely be one of the priorities of both investors and corporations. We are not only focused on cryptocurrencies but also on supporting our consumers in the virtual asset sector in general. ecosystem,” explained Paul Maley, global head of securities services at Deutsche Bank, as reported by Reuters. The bank manages more than $1. 4 trillion in assets and the crypto market has a total capitalization of $1. 1 trillion, according to Coingecko’s knowledge.
This technique is familiar at Deutsche Bank. The bank has been applying to offer cryptocurrencies to its consumers for the past 3 years and even applied for a virtual asset custody license from Germany’s Federal Financial Supervisory Authority in June 2023, as reported via CoinTelegraph.
This announcement is one of many moves around Bitcoin custody. On Sept. 14, U. S. bitcoin exchange Swan announced a joint venture with global virtual asset custodian BitGo to offer a new BTC custody service. The main difference with Deutsche Bank’s product is that it will be “Bitcoin only,” meaning that the only asset corporations will offer in escrow will be Bitcoin. However, the product is awaiting regulatory approval and will be operational in 2024.
However, the potential institutional interest in Bitcoin only fits the reality in custody. Build Asset Management has also introduced the Build Secured Income Fund I in partnership with U. S. custody firm Bitcoin Unchained.
“The Fund is one of the first direct loan personal credit budgets to invest in subsidized overcollateralized customer and business loans through Bitcoin,” a joint press release notes. The aim is to provide a “compelling return profile” to help accredited investors and institutions meet their revenue stream needs. This will also provide dollar capital to Bitcoin borrowers.
This fund will benefit from the liquidity of the Bitcoin market, as the collateral can be liquidated in a matter of minutes, which is a completely different truth from other collateralized assets. Build will keep senior clients secured and oversecured in the short term. and commercial loans from its customers.