by Rubab Fatima
Deutsche Boerse’s post-trade division Clearstream is launching cryptocurrency storage and settlement options for institutional clients as a major European financial organization adds digital assets to its services.
The new system will become active in 2025 to store Bitcoin and Ethereum for 2,500 institutional clients. The service will partner with Deutsche Boerse subsidiary Crypto Finance as a digital asset sub-custodian.
As Clearstream evolves its platform it will offer more than basic custody and settlement functions and will include multiple crypto assets with additional financial services including staking and lending plus brokerage operations.
Clearstream’s Custody Leadership in the European Market
Jens Hachmeister emphasized that Clearstream designed this plan to handle all client transactions related to asset management from start to finish. The business will start with tokenized securities and stablecoins to make the company digital asset services stronger.
More established financial companies decide to enter digital assets business because of changing rules in important financial regions across Europe, Singapore, and the United Arab Emirates. The EU’s Markets in Crypto-Assets (MiCA) regulations support banking institutions as they add cryptocurrencies to their services under controlled conditions.
After receiving approval BBVA SA started trading cryptocurrency for retail clients which demonstrates growing institutional crypto adoption. Clearstream manages the biggest amount of custodied assets across Europe and currently holds €20 billion worth of assets ($21.7 billion) in custody as of January 2024.
Natural Motivate 4G will connect institutions to its crypto custody and settlement features directly from their existing Clearstream Banking SA accounts. The Crypto Finance team initiated preparations for the cryptocurrency program a year before the market demand spiked. Due to MiCA’s implementation institutional participants started showing strong interest in the business.
Clearstream Lowers Barriers for Financial Institutions Entering Crypto
Customers want crypto services from international banks so strongly that Vander Staeten noted this trend. Larger financial institutions usually allocate €5 million to develop their in-house crypto operations. Institutional players can enter the digital asset field more easily today thanks to Clearstream’s compliant ready-to-use system which spares them construction costs.
Deutsche Boerse continues to enlarge its operations in the cryptocurrency industry. In 2018 BaFin Germany approved Crypto Finance for its official operation through four business licenses. Deutsche Boerse Digital Exchange started operations in March 2022 as the first officially licensed platform in Germany to trade and store crypto assets professionally.
The company is developing its exchange-traded product business operations. During July the Bitcoin Macro ETP became available for trading on Deutsche Boerse Xetra platform. Investors trade BMAC for its dynamic Bitcoin strategy and experience 2.00% total expense ratio through the exchange-traded product.
Clearstream develops new crypto services within Deutsche Boerse’s strategy to create a managed digital asset platform regulated for professional investors. Because Europe’s digital asset standards will develop further Clearstream can Shutterstock itself as a primary participant in crypto systems development across the area.
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