Deutsche Börse Enters the Crypto Market: Bitcoin and Ethereum Trading Begins
Institutional Investors Gain Access to Digital Assets via Clearstream
Deutsche Börse is making a significant move toward the digitalization of financial markets by stepping into cryptocurrency trading. Starting in April, institutional investors will be able to trade Bitcoin and Ethereum through its subsidiary, Clearstream.
Clearstream and Crypto Finance Drive Crypto Integration
This initiative is powered by two Deutsche Börse subsidiaries: Clearstream, a post-trade services provider, and Crypto Finance, which will act as a sub-custodian. Clearstream is expanding its portfolio to include crypto asset custody, leveraging the expertise of Crypto Finance.
Jens Hachmeister, Head of New Digital Markets at Clearstream, emphasized the importance of this step: “The custody of crypto assets is the next logical step in our journey toward financial market digitalization.” Clearstream clients will gain seamless access to digital assets while continuing to benefit from established post-trade systems.
Bitcoin and Ethereum to Lead the Way
Initially, the offering will include Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. Depending on demand, Deutsche Börse may expand its offering to include additional digital currencies.
Clients of Clearstream’s international central securities depository will be able to use their existing accounts to access settlement and custody services for cryptocurrencies—eliminating the need for separate contracts with external crypto service providers.
Regulatory Clarity Fuels Crypto Adoption
The growing involvement of traditional financial institutions in the crypto market is largely driven by clearer regulatory frameworks. Countries such as the EU, Singapore, and the United Arab Emirates have been working to establish rules for digital assets.
A major milestone was the introduction of the MiCA (Markets in Crypto Assets) regulation in the EU late last year. Since then, institutional demand for crypto services has surged, according to Stijn Vander Straeten, CEO of Crypto Finance, as reported by Bloomberg.
Rising interest from retail investors is also pushing banks to enter the crypto space. “It feels a bit like the high street is overtaking Wall Street,” remarked Clearstream’s Hachmeister.
Institutional Investments Could Boost the Crypto Market
With Deutsche Börse now stepping into the crypto sector, the market could see an additional boost. Last year, Bitcoin prices surged as major financial players like BlackRock and Franklin Templeton entered the space.
However, Bitcoin’s price has pulled back since the beginning of the year, with some analysts warning of a potential drop to $70,000. Yet, Clearstream’s entry—one of Europe’s leading post-trade service providers—could further enhance the adoption and legitimacy of cryptocurrencies, potentially driving new momentum in the market.
