Deutsche Boerse is set to offer cryptocurrency custody and settlement services to institutional clients starting next month, marking a major step into the crypto space. The company’s Clearstream division, known for its settlement services, will now provide custody for Bitcoin and Ether, the two largest cryptocurrencies by market capitalization.
Key Details:
- Launch date: April
- Service offered: Custody and settlement for Bitcoin and Ether, with potential for adding more cryptocurrencies based on demand.
- Sub-custodian: Crypto Finance, a subsidiary of Deutsche Boerse.
Expansion into Crypto
Deutsche Boerse, a major German exchange, began its foray into cryptocurrency services with the launch of a crypto trading platform for institutional investors in 2023. Offering crypto custody services is now part of Clearstream’s strategy to digitize financial markets, according to Jens Hachmeister, Clearstream’s head of issuer services and new digital markets.
Growing Crypto Adoption in Europe
The move comes after the European Union’s Markets in Crypto-Assets regulation (MiCA) was introduced in 2023, setting clear rules for crypto activities across Europe. Clearstream’s new service is part of a broader trend of European financial institutions moving into digital assets, with Crypto Finance having secured a MiCA license in January.
Industry Comparison
Deutsche Boerse joins a growing list of global custody providers like Bank of New York Mellon and State Street, which also offer crypto custody services. BBVA, a Spanish bank, is another notable institution expanding into the digital asset space by offering Bitcoin and Ether trading in Spain.
The move to institutionalize cryptocurrency services reflects growing mainstream financial interest in crypto assets, especially with U.S. regulators easing rules for banks to engage with digital currencies.
