Deutsche Börse’s Clearstream, a key player in the post-trade services sector, is set to venture into the realm of cryptocurrency custody services starting in April. This move comes as part of a strategic sub-custody arrangement with Crypto Finance, a Swiss subsidiary that recently obtained a MiCAR license to offer crypto services across Europe. The acquisition of a majority stake in Crypto Finance by Deutsche Börse in 2021 underscores the growing convergence of traditional financial institutions with the burgeoning digital asset landscape.
Jens Hachmeister, the Head of Issuer Services & New Digital Markets at Clearstream, emphasized that the decision to offer crypto custody aligns with the broader digitization trend reshaping financial markets. By providing institutional-grade and regulatory-compliant solutions, Clearstream aims to facilitate seamless access to new asset classes while leveraging its established post-trading infrastructure. Initially, clients of Clearstream’s International Central Securities Depository (ICSD) will be able to custody popular cryptocurrencies like Bitcoin and Ether through their existing accounts with Clearstream Banking SA in Luxembourg.
Notably, beyond its foray into crypto custody, Deutsche Börse Group has been actively involved in tokenization initiatives. Clearstream’s D7 platform has played a pivotal role in supporting over €20 billion in digital securities issuance, albeit mostly centralized through central securities depositories (CSDs). Additionally, the group has made strategic investments in digital collateral solutions like HQLAᵡ, reflecting a broader commitment to embracing digital innovations in collateral management.
Furthermore, Deutsche Börse’s diversification strategy extends to the launch of the Deutsche Börse Digital Exchange (DBDX), a cash cryptocurrency market that operates on a request-for-quote (RFQ) model. Through DBDX, market participants have access to a range of exchange-traded products and a crypto custody option facilitated by Crypto Finance. This move underscores the group’s proactive stance in adapting to evolving market dynamics and technological advancements in the digital asset space.
As the financial industry continues to witness rapid digital transformation, the intersection of traditional market infrastructure with blockchain technology and digital assets is becoming increasingly pronounced. Institutions like Deutsche Börse are at the forefront of this paradigm shift, leveraging their expertise and resources to bridge the gap between conventional finance and the emerging digital economy.
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