Clearstream and Crypto Finance, both members of Deutsche Börse Group, have facilitated digital asset access with a new crypto custody offering for institutional investors via Clearstream.
Clearstream, Deutsche Börse Group’s post-trade business, enhances its custody service portfolio to include crypto assets. The firm writes that by using Deutsche Börse Group company Crypto Finance as sub-custodian, Clearstream can rely on market-leading expertise to offer settlement and custody services in crypto assets to institutional investors.
The offering is expected to be launched in April this year. In January, Crypto Finance laid the groundwork by obtaining the MiCAR license, enabling the company to serve clients across Europe while solidifying its regulatory compliance and leadership in the industry.
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, says: “Offering crypto custody is the next step on Clearstream’s journey to digitise financial markets. The institutional-grade, regulatory compliant solution offers clients easy and quick access to new asset classes while enjoying the best features of our trusted and established post-trading systems. We are thrilled to collaborate with Crypto Finance, leveraging the strength of our global Deutsche Börse Group portfolio to make crypto assets ready for mass adoption.”
With this new solution, Clearstream and Crypto Finance are setting a new standard for the management of crypto assets. The collaboration marks another milestone in the development of harmonised digital financial markets and highlights Deutsche Börse Group’s aim of balancing innovation with security.
Stijn Vander Straeten, CEO Crypto Finance Group, adds: “This offering puts Deutsche Börse Group in a position second to none in the digital assets industry. We are now not only covering native services via direct interface, but also leverage traditional rails that are implemented with most financial market participants, meaning a very convenient offering to any financial institution who wishes to enter the crypto industry.” The sub-custody will be provided by Crypto Finance (Deutschland) GmbH.
Clients of Clearstream’s International Central Securities Depository (ICSD) can now use their existing accounts in Clearstream Banking S.A. (Luxembourg, CBL) to access crypto currency custody and settlement, leveraging well-embedded connectivity and communication formats, such as Swift. Furthermore, no additional direct contractual, technical and functional relationship with crypto currency service providers is required.
Clients can choose Clearstream as a custody and settlement location for crypto currency trading activity concluded 24/7 on various trading venues. The two largest cryptocurrencies by market capitalisation, Bitcoin (represented with ISIN XTV15WLZJMF0) and Ethereum (represented with ISIN XTD5RG2FHH04) are the first crypto assets in scope of Clearstream’s offering. Further expansion into further crypto currencies will be considered, following client demand.
