Deutsche Bank Partners with Keyrock to Offer FX Services for Crypto Market Maker
In a strategic move to strengthen its foothold in the cryptocurrency industry, Deutsche Bank has partnered with Keyrock, a prominent market maker in the digital asset space. The collaboration aims to enhance Keyrock’s foreign exchange (FX) services while optimizing its market-making and over-the-counter (OTC) trading operations.
On October 14, 2024, Deutsche Bank announced its partnership with Keyrock, a crypto-native market maker founded in 2017, which offers liquidity solutions for digital asset markets. Through this alliance, Deutsche Bank will provide Keyrock with multi-currency accounts and comprehensive FX services, enabling the company to expand its market presence while consolidating services to minimize counterparty and settlement risks.
A Partnership to Expand Crypto Trading Efficiency
Keyrock currently provides market-making and OTC trading across over 100 currency pairs in around 400 markets globally. By partnering with Deutsche Bank, one of the most respected financial institutions, Keyrock aims to enhance the efficiency of its operations. The bank’s advanced infrastructure and support for over 10 different currencies will improve Keyrock’s ability to handle fiat transactions and facilitate near-instant settlements, which are crucial for the rapidly evolving digital asset markets.
Kevin de Patoul, CEO of Keyrock, expressed enthusiasm about the partnership, saying:
Working with Deutsche Bank allows us to collaborate with one of the most respected institutions in global finance. Together, we are well-positioned to provide greater value and efficiency in global digital asset markets.
With Deutsche Bank’s involvement, Keyrock is poised to strengthen its presence in key regions such as EMEA (Europe, Middle East, and Africa), APAC (Asia-Pacific), and LATAM (Latin America), broadening its reach and capabilities in global digital markets.
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Keyrock’s Growth and Deutsche Bank’s Strategic Move into Digital Assets
Keyrock’s partnership with Deutsche Bank comes on the heels of a successful Series B funding round in 2022, where the company raised $72 million, led by Ripple. This funding allowed Keyrock to expand its services, including receiving regulatory approval from the Swiss Financial Services Standards Association, to offer fiat on/off-ramp services through its OTC trading desk.
Deutsche Bank’s collaboration with Keyrock is part of the institution’s broader involvement in the cryptocurrency and digital asset sectors. Over the past few years, Deutsche Bank has actively engaged in blockchain pilots for asset tokenization and inter-bank settlements, collaborated with digital asset infrastructure provider Taurus, and provided banking services to crypto exchange Bitpanda.
Deutsche Bank’s Crypto Expansion: From Custody to Market Making
Deutsche Bank’s increasing involvement in the crypto industry extends beyond partnerships with market makers like Keyrock. The bank has made significant strides in developing its digital asset infrastructure, including applying for regulatory approval to operate as a cryptocurrency custodian in Germany.
This move aligns with the institution’s ongoing efforts to offer seamless, institutional-grade digital asset custody services. The bank’s digital asset custody prototype, initially announced in 2020, was designed to cater to the needs of institutional clients and to establish a stronger connection between traditional finance and the emerging cryptocurrency ecosystem.
Germany’s largest banking institution has also been supporting its investment arm, DWS Group, in exploring opportunities in the crypto sector. DWS Group has invested in Deutsche Digital Assets, a provider of crypto exchange-traded products, and Tradias, another prominent market maker in the digital assets industry.
Deutsche Bank’s involvement with Keyrock marks another significant step toward integrating traditional banking with the growing cryptocurrency market, offering enhanced liquidity solutions and FX services. As the partnership unfolds, it highlights the evolving relationship between established financial institutions and the expanding world of digital assets.
