Deutsche Börse Group, a prominent financial market infrastructure provider, has ventured into the realm of cryptocurrency custody through a strategic partnership with Clearstream, a subsidiary of the group. This collaboration aims to offer institutional clients access to digital assets, marking a significant move in embracing the growing trend of cryptocurrencies within traditional financial systems.

Clearstream, known for its post-trade services, has diversified its offerings by incorporating crypto asset custody services, leveraging the expertise of Crypto Finance, another entity under the Deutsche Börse Group umbrella. By utilizing Crypto Finance as a sub-custodian, Clearstream is poised to deliver settlement and custody solutions tailored for institutional investors venturing into the crypto space. The official launch of this service is slated for April this year.

In preparation for this initiative, Crypto Finance obtained the MiCAR license earlier this year, positioning itself to cater to clients across Europe while ensuring regulatory compliance. Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, expressed enthusiasm about the new venture, emphasizing that the move towards offering crypto custody aligns with Clearstream’s commitment to modernizing financial markets. Hachmeister highlighted the solution’s institutional-grade quality and regulatory adherence, underscoring the ease of access to new asset classes within a trusted framework.

The collaboration between Clearstream and Crypto Finance signifies a significant milestone in the convergence of traditional and digital financial markets, reflecting Deutsche Börse Group’s dedication to fostering innovation while upholding security standards. Stijn Vander Straeten, CEO of Crypto Finance Group, lauded the partnership for positioning Deutsche Börse Group as a leader in the digital assets arena. The offering not only encompasses native services but also integrates traditional financial infrastructure, presenting a seamless entry point for financial institutions venturing into crypto.

Under this arrangement, Crypto Finance (Deutschland) GmbH will provide sub-custodial services, enabling clients of Clearstream’s International Central Securities Depository to utilize their existing accounts for crypto custody and settlement via Clearstream Banking S.A. This streamlined approach leverages established connectivity channels like Swift, eliminating the need for direct engagements with multiple crypto service providers. Moreover, clients can conduct crypto trading activities around the clock across various trading platforms, with initial support for prominent cryptocurrencies such as Bitcoin and Ethereum.

As financial markets continue to evolve, the foray of Deutsche Börse Group into crypto custody underscores a broader industry shift towards integrating digital assets into traditional frameworks. By bridging the gap between conventional financial infrastructure and emerging crypto technologies, this partnership heralds a new era of accessibility and efficiency in managing crypto assets within institutional investment landscapes.