DaoFu Bank has chosen Taurus for cryptocurrency custody and tokenization

PANews reported on August 20th, according to CoinDesk, that State Street Bank is a global custodian bank managing $44.3 trillion in assets. To embrace a more relaxed regulatory environment in the United States, State Street Bank has chosen Taurus, a cryptocurrency custody and tokenization company, to provide digital asset services. The bank stated that its initial focus will be on launching tokenized versions of traditional assets and will announce its first client soon.

Donna Milrod, Chief Product Officer and Head of Digital Asset Solutions at State Street Bank said that the bank has been "very outspoken" about needing to amend SAB 121 which could force banks seeking to hold cryptocurrencies to maintain substantial capital as risk compensation. In an interview Milrod said: "Although we started with tokenization, this is not our end point; once US regulations are helpful for us we will also offer digital custody services. We know how to be custodians. We won't do it on balance sheet but off-balance-sheet instead - they are not our assets."

Lamine Brahimi, co-founder and executive partner of Swiss-based Taurus pointed out the benefits of tokenization such as round-the-clock trading and optimized collateral management capabilities while also echoing the need for improved regulation in America. During his interview he stated: “I am confident that this collaboration with State Street Bank will send positive signals overall for U.S financial markets which have lagged behind Europe due to the impact of SAB 121.”