Deutsche Börse Group Expands into Crypto Asset Custody for Institutional Investors Via Clearstream

Deutsche Börse Group is set to offer institutional clients access to cryptocurrency services through its post-trade business Clearstream, working in partnership with its subsidiary Crypto Finance.

The new custody service, expected to launch in April 2025, will enable institutional investors to settle and hold crypto assets using their existing Clearstream accounts without needing additional relationships with specialised crypto providers.

Initially, the service will support Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalisation, with plans to expand the offering based on client demand.

This development follows Crypto Finance's January acquisition of a MiCAR licence (Markets in Crypto-Assets Regulation), which allows the company to serve clients across Europe while maintaining regulatory compliance.

Jens Hachmeister, Head of Issuer Services & New Digital Markets, Clearstream

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, comments: "Offering crypto custody is the next step on Clearstream's journey to digitise financial markets. The institutional-grade, regulatory compliant solution offers clients easy and quick access to new asset classes while enjoying the best features of our trusted and established post-trading systems. We are thrilled to collaborate with Crypto Finance, leveraging the strength of our global Deutsche Börse Group portfolio to make crypto assets ready for mass adoption."

The collaboration represents a significant step in the traditional financial sector's integration with digital assets. Clients of Clearstream's International Central Securities Depository (ICSD) will be able to use their existing accounts in Clearstream Banking S.A. (Luxembourg) to access cryptocurrency custody and settlement services through familiar channels like Swift.

Stijn Vander Straeten, CEO, Crypto Finance Group

Stijn Vander Straeten, CEO Crypto Finance Group, adds: "This offering puts Deutsche Börse Group in a position second to none in the digital assets industry. We are now not only covering native services via direct interface, but also leverage traditional rails that are implemented with most financial market participants, meaning a very convenient offering to any financial institution who wishes to enter the crypto industry."

The sub-custody services will be provided by Crypto Finance (Deutschland) GmbH, the German regulated entity of Crypto Finance.

Clearstream holds approximately €19 trillion in assets under custody. It operates the German and Luxembourg central securities depositories and an international central securities depository for the Eurobonds market, making it one of the world's largest settlement and custody firms.

Crypto Finance Group, acquired by Deutsche Börse Group in 2021, includes entities regulated by both FINMA in Switzerland and BaFin in Germany, offering trading, custody, and wallet services for digital assets.