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Deutsche Boerse’s post-trade division Clearstream is set to launch cryptocurrency settlement and custody services for institutional clients in 2025, representing a significant advancement into digital asset infrastructure by a prominent European financial institution.
Clearstream announced on Tuesday that it will initially support Bitcoin and Ethereum, offering services to 2,500 institutional clients, according to a Bloomberg report from March 11.
The platform will utilize its majority-owned subsidiary Crypto Finance as a sub-custodian for digital assets.
Clearstream Aims to Expand Into Staking, Lending, and Additional Crypto Services
Over time, Clearstream intends to broaden its offerings to encompass more cryptocurrencies, staking, lending, and brokerage services.
“With this offering, we’re creating a comprehensive solution for custody, brokerage, and settlement,” remarked Jens Hachmeister, head of issuer services and new digital markets at Clearstream.
He noted that this initiative will eventually enable the company to provide services for stablecoins and tokenized securities as well.
Traditional financial institutions have been increasing their involvement in digital assets, driven by advancing regulatory clarity in regions such as the European Union, Singapore, and the UAE.
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The EU’s Markets in Crypto-Assets (MiCA) framework, which took effect last year, has facilitated banks and financial entities to incorporate crypto into their services.
For instance, Spanish banking giant BBVA SA recently received regulatory approval to initiate crypto trading for retail customers, reflecting a broader trend of institutional acceptance.
As one of Europe’s largest clearinghouses, Clearstream currently manages €20 billion ($21.7 billion) in assets under custody as of January 2024.
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The company’s central securities depository will allow clients to access its crypto custody and settlement services through their existing Clearstream Banking SA accounts.
According to Crypto Finance CEO Stijn Vander Straeten, planning for the crypto offering commenced about a year ago when demand was still relatively modest.
However, institutional interest has since skyrocketed, particularly following the introduction of MiCA.
“There has been significant demand for crypto support from international banking clients,” Vander Straeten observed.
He stressed that many large financial institutions invest up to €5 million in developing internal crypto teams, while Clearstream’s service will provide them with a compliant solution at no additional cost.
Deutsche Boerse Expands Crypto Services
Last year, BaFin, Germany’s financial regulator, granted four licenses to Crypto Finance, a company operated by Deutsche Börse.
Subsequently, in March, the German stock exchange launched a regulated spot platform for crypto assets aimed at institutional clients.
At that time, Deutsche Börse stated that the platform, named the Deutsche Börse Digital Exchange (DBDX), would offer a fully regulated environment for the trading, settlement, and custody of crypto assets.
In July, the firm also listed the Bitcoin Macro exchange-traded product (ETP) on the Deutsche Börse Xetra platform.
The ETP adjusts its Bitcoin exposure based on macroeconomic conditions and is trading under the ticker symbol “BMAC” with a total expense ratio of 2.00%.
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