Deutsche Börse Launches Crypto Custody Service via Clearstream

Deutsche Börse, Europe’s third-largest stock exchange, is set to launch a new crypto custody service through its post-trade unit, Clearstream. This initiative, announced on March 11, represents a significant step in the exchange's expansion into digital assets. The service, which will initially support Bitcoin and Ethereum, is scheduled to go live in April. Institutional clients will have access to custody and settlement services, with plans to incorporate additional cryptocurrencies in the future.

Clearstream will rely on its majority-owned subsidiary, Crypto Finance, to handle sub-custody for digital assets. Crypto Finance has secured a Markets in Crypto-Assets (MiCA) framework license, which enables the firm to operate across Europe and reinforces its regulatory standing. MiCA establishes a standardized regulatory structure for digital assets across the European Union, aiming to eliminate inconsistencies in compliance. This regulatory approval is crucial for Clearstream's expansion into crypto custody services, as it ensures that the service is compliant with European regulations.

Jens Hachmeister, who leads issuer services and new digital markets at Clearstream, highlighted that this initiative strengthens the company’s role as a comprehensive provider of crypto custody, brokerage, and settlement solutions. He emphasized that the institutional-grade, regulatory compliant solution offers clients easy and quick access to new asset classes while enjoying the best features of Clearstream’s trusted and established post-trading systems. Hachmeister also hinted at the company's preparations for future developments in stablecoins and tokenized securities.

This move aligns with Deutsche Börse’s broader strategy within the digital asset sector. In March, the German stock exchange introduced a regulated spot trading platform for crypto, targeting institutional investors. Stijn Vander Straeten, CEO of Crypto Finance Group, noted that these initiatives strengthen Deutsche Börse Group’s leadership in digital assets. He pointed out that the company now offers direct crypto services and integration with traditional financial systems, providing a seamless entry point for institutions exploring the crypto market.

Clearstream’s new crypto custody service will be available to clients of its International Central Securities Depository (ICSD) through their existing accounts with Luxembourg’s Clearstream Banking SA. This integration ensures a seamless experience for clients, who can manage their cryptocurrency holdings alongside their traditional assets. The service will leverage the expertise of Crypto Finance, which has been instrumental in laying the foundation for this expansion by securing the necessary regulatory approvals.