- Deutsche Börse, a premier European stock exchange, is gearing up to introduce a regulated cryptocurrency exchange by 2024, along with stablecoin deployment.
- The exchange’s strategic expansion into digital assets includes a focus on institutional services, complementing its existing majority stake in the brokerage firm Crypto Finance.
Institutional Ambitions in the Crypto Sphere
In an age where digital currencies are becoming as pivotal as traditional ones, Deutsche Börse is making a strategic entrance into the crypto exchange market, targeting a 2024 launch date for its regulated trading platform. This new exchange is poised to be a cornerstone in Deutsche Börse’s comprehensive plan to envelop the entire digital asset value chain, according to Thomas Book, the head of trading and clearing at the group. While indications point towards an institutionally-focused service, official confirmation awaits.
As a dominant shareholder in Crypto Finance, a brokerage firm acquired in 2021, Deutsche Börse is no stranger to the digital currency arena. Its competitive edge will be further sharpened against smaller exchanges like Börse Stuttgart’s BSDEX, catering predominantly to retail consumers but also extending institutional custody services.
Advancing the Digital Securities Frontier
The ambition of Deutsche Börse transcends cryptocurrencies, venturing deep into tokenized securities and alternative assets. Its D7 digital securities registry, although centralized in its current iteration, leverages Distributed Ledger Technology (DLT) and has already seen a substantial volume of digital securities issued—amounting to over €3 billion, a significant portion of which was transacted in the last month after the API integration facilitated greater automation.
The group has partnered with notable financial institutions such as Commerzbank and Vontobel for securities issuance, signaling a robust collaboration ecosystem. The current emphasis on German fixed income markets will soon expand internationally, with sights set on Luxembourg and the inclusion of diverse asset classes like ETFs. While a decentralized custody solution is on the horizon, specifics on its debut are pending.
With the D7 platform’s success in the German retail structured products market and potential cost efficiencies via automated digital issuances and instantaneous settlement, Deutsche Börse is tapping into the burgeoning demand for digital asset management solutions.
Expanding Digital Asset Ventures
The group’s trajectory in the digital assets field is further evidenced by its acquisition of fundsDLT, a fund distribution platform from Luxembourg, now integrated with the D7 platform. Its investment portfolio extends to 360X, focusing on tokenizing high-value assets such as art and real estate.
Moreover, Deutsche Börse’s initial forays into DLT through its involvement with HQLAᵡ, a collateral management platform, underscore the group’s commitment to innovating within the blockchain space and establishing a foothold as a facilitator of tokenization in the global financial ecosystem.