Germany’s Deutsche Boerse is expanding its reach into the cryptocurrency market. The company announced Tuesday that it will offer custody and settlement services for institutional clients, starting next month.
The new service, handled through Deutsche Boerse’s settlement business, Clearstream, will allow for the settlement and holding of cryptocurrencies. This move represents a further expansion into crypto services for the German exchange, which launched its own crypto trading platform for institutional investors last year.
From April, Clearstream will support bitcoin and ether, the two largest cryptocurrencies. The company is also considering adding other cryptocurrencies based on client demand.
Deutsche Boerse subsidiary Crypto Finance will act as a sub-custodian. “Offering crypto custody is the next step on Clearstream’s journey to digitise financial markets,” said Jens Hachmeister, Clearstream’s head of issuer services and new digital markets.
This development comes as European financial institutions are increasing their involvement in cryptocurrencies, following the introduction of the Markets in Crypto-Assets regulation (MiCA) in 2023.
The news follows Crypto Finance’s acquisition of a MiCA license this past January. Other major financial institutions, like Bank of New York Mellon and State Street, have also begun offering crypto custody services in recent years. Deutsche Boerse itself launched a regulated platform for institutional crypto trading through its 360T subsidiary in March of last year.
The increasing involvement of mainstream financial institutions in crypto is fueled by the evolving regulatory landscape. Recent developments like the U.S. regulators’ moves to make it easier for banks to engage in crypto activities, and the election of Donald Trump have spurred this trend.
European banks are also expanding their crypto services. For example, Spanish bank BBVA recently gained approval to offer bitcoin and ether trading in Spain.
