Deutsche Börse’s subsidiary, Clearstream, is set to venture into the cryptocurrency custody market, marking a significant move in the financial industry’s digital transformation. The decision comes as Clearstream partners with Crypto Finance, a Swiss company, to offer crypto custody services to institutional clients starting in April. This strategic move aligns with Clearstream’s commitment to modernizing financial markets and providing clients with access to new asset classes within a secure and compliant framework.

The collaboration between Clearstream and Crypto Finance is underpinned by Crypto Finance’s recent acquisition of a MiCAR license, enabling the provision of crypto services across Europe. Notably, Deutsche Börse had previously acquired a majority stake in Crypto Finance for over €100 million in 2021, emphasizing the group’s strategic focus on digital asset trading and brokerage.

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, highlighted the significance of offering crypto custody as a pivotal step in the company’s digitalization journey. The move aims to streamline access to cryptocurrencies for institutional investors while leveraging Clearstream’s established post-trading infrastructure. Initially, clients of Clearstream’s International Central Securities Depository (ICSD) will have the opportunity to custody Bitcoin and Ether through their existing accounts at Clearstream Banking SA in Luxembourg.

In addition to its crypto custody initiative, Deutsche Börse Group has been actively involved in tokenization efforts. Clearstream’s D7 platform has facilitated the issuance of over €20 billion in digital securities, albeit with a centralized focus through the central securities depository (CSD). Furthermore, the group has made significant investments in digital collateral solutions, such as HQLAᵡ, and received regulatory approval for Eurex Clearing to utilize digital collateral for margin requirements.

Moreover, Deutsche Börse’s expansion into the crypto custody market is complemented by its establishment of the Deutsche Börse Digital Exchange (DBDX), a cash cryptocurrency market that operates on a request-for-quote (RFQ) model. Through DBDX, clients can access crypto custody services via Crypto Finance, further enhancing the group’s presence in the evolving digital assets landscape.

The foray into crypto custody underscores Deutsche Börse’s commitment to innovation and adaptability in response to the shifting financial landscape. By embracing digital assets and blockchain technologies, the group is poised to strengthen its position as a leader in fostering the convergence of traditional finance and emerging digital ecosystems.