Despite the regulatory scrutiny and the global market downturn, firms are still seen putting funds into investments in the industry. Earlier today, Credit Suisse Group AG, a global investment bank and financial services firm founded and based in Switzerland reportedly raised a total amount of $65 million in funding for digital asset firm, Taurus SA.
Other financial services firms such as Deutsche Bank AG, Pictet Group, Arab Bank Switzerland Ltd, and Investis Holding SA were all part of contributors to the funding. According to BNN Bloomberg citing a person familiar with the matter, this funding increases Taurus’s value to multiple hundreds of dollars.
Taurus is a financial product firm founded in 2018. The company provides products whereby financial firms can use to store and issue digital assets that include cryptocurrencies and tokenized versions of securities such as bonds. The company also operates a regulated marketplace for trading tokenized securities.
Plans Behind The Funding
Per the Bloomberg report, the firms involved in the funding have listed some achievable goals associated with the investment. Most companies have seen the potential of blockchain technology and have been attracted to it.
Daniel Gorrera, head of digital assets Switzerland at the bank, mentioned in an interview, Credit Suisse will use Taurus to develop its digital asset services, including urging corporate clients on potential use cases of blockchain technology.
Gorrera added “The fact we are making such an investment is a clear testament that there is a future in digital assets. It is part of the overall strategy of Credit Suisse. Switzerland’s regulatory and legal framework for digital assets provides clarity for the industry to develop offerings there.”
While Credit Suisse has its plan behind the raised funds, Deutsche Bank – another contributor to the funding – also disclosed its side of the plan stating its aim to launch its own digital assets custody service with Taurus.
Paul Maley, global head of securities services at the German lender, said in an interview “Deutsche Bank has not been very visible on this particular topic and that has been deliberate. We have been searching for a technology partner to help us on the digital asset journey.”
As companies have continued to have faith in the adoption of digital assets over the years, digital assets themselves such as cryptocurrencies have demonstrated growth. Over the past few years, cryptocurrencies have developed into various sectors including DeFi boosting its global crypto market cap to a peak of more than $2 trillion in 2021.
Meanwhile, at the time of writing, the global crypto market cap is currently down by more than 50% from its all-time high. It currently sits above the $1 trillion mark, according to CoinGecko, despite the intensifying regulation updates.
Earlier today, BlockchainReporter reported that U.S. SEC is considering banning hedge funds’ crypto custodian partnerships. Experts have predicted this is just the beginning of regulatory scrutiny. Should this be true, we could see more reds in the market driving the global crypto market cap below $1 trillion.
