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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Deutsche Boerse’s post-trade unit Clearstream is set to introduce cryptocurrency settlement and custody services for institutional clients in 2025, marking a significant step into digital asset infrastructure by a major European financial firm.
Clearstream announced on Tuesday that it will initially support Bitcoin and Ethereum, offering services to 2,500 institutional clients, according to a Bloomberg report on March 11.
The platform will utilize its majority-owned subsidiary Crypto Finance as a sub-custodian for digital assets.
Clearstream Eyes Expansion Into Staking, Lending, and More Crypto Services
Over time, Clearstream plans to expand its offerings to include additional cryptocurrencies, staking, lending, and brokerage services.
“With this offering, we are creating a one-stop shop around custody, brokerage, and settlement,” said Jens Hachmeister, head of issuer services and new digital markets at Clearstream.
He added that the move will eventually allow the company to provide services for stablecoins and tokenized securities as well.
Traditional financial firms have been increasing their exposure to digital assets, driven by evolving regulatory clarity in regions such as the European Union, Singapore, and the UAE.
The EU’s Markets in Crypto-Assets (MiCA) framework, which came into effect last year, has paved the way for banks and financial institutions to integrate crypto into their services.
For example, Spanish banking giant BBVA SA recently received regulatory approval to launch crypto trading for retail clients, reflecting a broader trend of institutional adoption.
As one of Europe’s largest clearinghouses, Clearstream currently oversees €20 billion ($21.7 billion) in assets under custody as of January 2024.
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 began about a year ago when demand was still relatively low.
However, institutional interest has since surged, particularly following the implementation of MiCA.
“There has been very high demand for crypto support from international banking clients,” Vander Straeten noted.
He emphasized that many large financial institutions spend up to €5 million on developing internal crypto teams, whereas Clearstream’s service will provide them with a compliant solution at no additional cost.
Deutsche Boerse Expands Crypto Offerings
Last year, BaFin, Germany’s financial regulator, issued four licenses to Crypto Finance, a firm operated by Deutsche Börse.
Subsequently, in March, the German stock exchange launched a regulated spot platform for crypto assets targeting institutional clients.
At the time, Deutsche Börse said the platform dubbed the Deutsche Börse Digital Exchange (DBDX) would offer a fully regulated ecosystem 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 factors and is trading under the ticker symbol “BMAC” with a total expense ratio of 2.00%.
