Institutions Gain Secret Weapon: Crypto Custody That Earns While It Holds

Crypto Finance, a subsidiary of Deutsche Börse Group, has launched Crypto Finance AnchorNote, an innovative off-exchange settlement solution tailored for institutional investors. The product is designed to enhance capital efficiency and trading flexibility by enabling institutions to trade across multiple platforms without transferring their digital assets out of custody. By allowing the settlement of trades off-exchange, institutions can earn yields in a compliant and risk-controlled environment.

The solution integrates BridgePort as a middleware layer, facilitating real-time communication between exchanges and custodians. This infrastructure is intended to streamline the movement of collateral among platforms and to reduce counterparty risk by eliminating the need for pre-funding. The system is accessible through both a user-friendly interface and a direct API connection, aiming to support scalable asset mobility.

According to Philipp Dettwiler, head of custody and settlement at Crypto Finance, AnchorNote bridges the gap between custody and capital efficiency. The launch is initially targeted at the Swiss market, with plans for a broader European rollout. The company, which is regulated in both Germany and Switzerland, has established itself as a provider of institutional-grade digital asset solutions.

The product aligns with the growing trend of off-exchange settlement in the digital asset space. For instance, in July, Coinbase International Exchange integrated Copper’s ClearLoop network to offer institutional clients off-exchange settlement. Similarly, Sygnum partnered with crypto derivatives exchange Deribit to offer off-exchange custody through its platform. These developments signal a shift toward more secure and efficient trading practices in the institutional space.

From a regulatory standpoint, Crypto Finance’s initiative is supported by its compliance with the Markets in Crypto-Assets (MiCA) framework, a regulatory milestone in Europe that aims to promote market stability and investor protection. The service is part of a broader strategy by Deutsche Börse Group to integrate traditional and digital asset markets, leveraging its infrastructure to meet evolving institutional demands.

The introduction of AnchorNote is positioned as a transformative step in digital asset trading, particularly for institutions seeking to optimize capital usage and mitigate risks. The platform’s focus on real-time collateral movement and secure custody aligns with the industry’s push toward greater standardization and efficiency.