Switzerland is considered to be the world’s crypto wonderland. However, that does not mean that its banks are automatically buying into the promises of Bitcoin, too. Credit Suisse, despite investing in the digital assets platform Taurus, is not keen on putting its money on the oldest catalyst of the crypto craze right now.
Credit Suisse Invests in Taurus
According to a report, Credit Suisse is now the lead investor of Taurus. This came following the acquisition of Switzerland’s second-largest bank of $65 million (CHF60 million) worth of shares during the series B round offering of the crypto finance company.
Taurus is a Geneva-based firm that engages in providing storage and management of cryptos. Its business also involves the issuance of stablecoins, which is a kind of crypto backed by traditional assets.
Despite its investment in the crypto-related company, Credit Suisse is reluctant about buying into the hype surrounding cryptocurrencies, particularly Bitcoin. Instead, it is more interested in the other blockchain ventures of Taurus.
The Swiss bank is particularly eyeing to capitalize on the capability of the company to create blockchain-integrated shares and other securities. The tokenized versions of these securities that are stored and transferred on Distributed Ledger Technology (DLT) are projected to pave the way for cost efficiency and transparency in making as well as trading stocks and bonds in the future.
As mentioned in our previous article, blockchain-based stocks and bonds offer more streamlined and seamless procedures compared to traditional methods. Based on the benefits realized by Siemens, these can eliminate lots of paperwork, make the involvement of intermediaries obsolete, and can greatly help in overcoming regional barriers.
The move of Credit Suisse mirrors the new trend being adopted by other banks and even the Swiss stock exchange. Among the other big investors in Taurus are Deutsche Bank and Arab Bank Switzerland.
Credit Suisse on Bitcoin
Only a few Swiss banks are jumping on the hype train of cryptos, especially Bitcoin. The negative sentiments of these financial institutions on the world’s oldest successful crypto were further fueled by the FTX fiasco last year. The inadequate policing in this industry is another factor that’s keeping them wary.
Meanwhile, Credit Suisse Switzerland CEO Andre Helfenstein stated that as with most banks, they remain conservative in terms of their investments. But then again, the move is seen as a major leap for the company toward having a strong presence in the future crypto landscape.
The other major banks mentioned also had major plans on how they can make the most out of their investments with Taurus. Deutsche Bank said it will look into integrating its tech into its IT. On the other hand, Arab Bank wants to utilize the company in improving its digital asset custody system.
The overall narrative on Bitcoin remains bullish despite the continuous crackdown of regulatory bodies — particularly the US government — on cryptos. Banks on the other hand seem to be treading carefully in their foray into blockchain by concentrating on how they can fully integrate their products and services with it while veering away from cryptos.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager for a consultancy firm.