Deutsche Börse Group has acquired a two thirds majority stake in Crypto Finance, a fully licensed securities firm providing 24/7 trading and brokerage of more than 200 digital assets in combination with an in-house custody solution.
The German exchange operator said the investment, which was in the “moderate three-digit CHF million range,” will enable it to extend its offering in digital assets by providing a direct entry point for investments, including post-trade services such as custody.
The group has been vocal in the past about building a reliable, fully regulated ecosystem in Europe for digital assets.
As part of Deutsche Börse Group, Crypto Finance, which was founded in 2017, will be able to further scale the business and expand the range of digital asset services.
Deutsche Börse also intends to make Crypto Finance’s products easily accessible for participants via its established platforms. The goal is to establish a neutral, transparent, and highly scalable digital asset ecosystem under European regulation.
“Digital assets will transform the financial industry,” said Thomas Book, Executive Board member for Trading & Clearing at Deutsche Börse. “There is increasing demand from established financial institutions who are looking to become active in this new asset class and want a trusted partner,”
He added Crypto Finance’s “team is an ideal strategic fit and will help us tremendously on our way to building a trusted and fully regulated digital asset ecosystem for institutional investors in Europe. Crypto Finance perfectly complements our recent offerings like 360X, the innovative DLT-based platform for serial marketplace creation, and our leading, centrally-cleared crypto ETNs.”
Jan Brzezek, CEO & Founder, Crypto Finance who will continue to lead and manage the business, said: “Since the beginning, our goal was to bridge the old and new worlds. This is why we are excited to team up with a neutral partner like Deutsche Börse, who brings trust, reputation, and expertise in traditional financial market infrastructure. “
He added, “In combination with our proven expertise in crypto assets and the underlying technologies, we can now achieve our goals much faster. Together, we will enable thousands of financial institutions and professional investors in Europe to instantly enter this new asset class in a way they are familiar with.”
The parties expect to close the transaction in the fourth quarter of 2021, following regulatory approvals.
©Markets Media Europe 2021