Turkish Neobank Embraces Bitcoin Custody and Asset Tokenization

Misyon Bank, positioned in Şişli, a suburb near Istanbul, proudly asserts itself as Turkey’s pioneering neobank. In a strategic move signaling a progressive shift in Turkey’s regulatory landscape, Misyon has entered into a partnership with Swiss technology provider, Taurus. The aim? To delve into the realm of cryptocurrency custody and asset tokenization, potentially paving the way for broader market acceptance in Türkiye.

Under the agreement, Misyon Bank will leverage Taurus’ cutting-edge technologies to securely custody digital assets, initially focusing on prominent cryptocurrencies like Bitcoin, Ether, and Avalanche, with plans to include a broader spectrum of “essential cryptocurrencies” in the future. Moreover, Misyon is gearing up to establish a robust infrastructure for the tokenization of traditional securities such as bonds and stocks, catering not only to Turkish enterprises but also to those across the wider region.

Önder Halisdemir, CEO of what he dubs “Turkey’s premier neobank,” envisions transforming Turkey into a regional financial hub akin to Switzerland. The collaboration with Taurus marks a pivotal stride towards this ambition, as Halisdemir emphasizes, “With this partnership, Turkish assets will be presented attractively to global investors,” positioning Turkey at the forefront of the tokenization trend.

In Turkey, the regulatory groundwork for digital asset custody is gradually taking shape. Finance Minister Mehmet Şimşek’s favorable disposition towards the industry, coupled with President Erdoğan’s apparent inclination towards crypto-friendly policies, underscores a potentially conducive environment for innovation.

Misyon’s bold move to embrace Bitcoin and Ether custody hints at a more permissive stance from the government, a departure from its previously stringent approach. However, by aligning with Taurus, Misyon Bank adopts a prudent strategy, ensuring adaptability in the face of evolving regulations, even in scenarios where certain cryptocurrencies like Bitcoin may face restrictions, and only regulated “digital assets” are permitted.

Geneva-headquartered Taurus stands out for seamlessly integrating blockchain with traditional banking, offering a crypto platform that harmonizes with conventional banking systems. This interoperability has garnered Taurus a clientele comprising major financial institutions such as Banco Santander, Deutsche Bank, and Credit Suisse. Its platform’s ability to interface with both public and private blockchains facilitates transactions involving digital central bank currencies.

With a substantial $65 million investment secured in February of the preceding year, Taurus is well-positioned to advance its technology and expand its client base, prioritizing innovation over immediate profitability.

While Taurus may not epitomize the ethos of pure cryptocurrencies, its model offers a considerably more inclusive alternative compared to entities like R3, which lean towards digitalized fiat currencies and bonds, aligning closely with Europe’s banking establishment.