Germany's Deutsche Boerse announced on Tuesday its upcoming launch of cryptocurrency custody and settlement services for institutional clients starting next month. This move adds to the institution's recent expansion into the crypto space, following the introduction of its crypto trading platform for institutional investors last year.
The new service will facilitate the settlement and custody of crypto transactions on various trading platforms through Clearstream, Deutsche Boerse's settlement arm. Initially offering custody for bitcoin and ether, the two largest cryptocurrencies, the company plans to consider adding more cryptocurrencies in the future based on demand. Deutsche Boerse's subsidiary, Crypto Finance, will serve as a sub-custodian.
Jens Hachmeister, Clearstream's head of issuer services and new digital markets, highlighted, "Offering crypto custody is the next step on Clearstream’s journey to digitise financial markets."
This development aligns with a broader trend in European financial institutions venturing into the crypto space, particularly following the introduction of the Markets in Crypto-Assets regulation (MiCA) by the European Union in 2023. Notably, Crypto Finance secured a MiCA license in January.
In the wake of increasing institutional involvement in crypto, other major custody managers like Bank of New York Mellon and State Street have also started offering crypto custody services in recent years.
Deutsche Boerse's move into the crypto sector includes the regulated platform for institutional investors to trade cryptocurrencies, integrated into its subsidiary Deutsche Boerse's 360T. This shift comes amid growing expectations for mainstream financial institutions to engage in crypto activities following the election of Donald Trump as U.S. President last year.
Furthermore, European banks are also expanding their crypto services, with Spanish bank BBVA announcing approval from the country's securities regulator to offer bitcoin and ether trading services in Spain.
Though bitcoin initially surged in value after Trump's election, its price has since experienced a decline.