Deutsche Börse to Launch Crypto Custody and Settlement Services for Institutional Clients in 2025, Expanding Bitcoin and Ether Offerings.
Deutsche Börse Clearstream to Launch Crypto Custody and Settlement Services for Institutional Clients in 2025
Deutsche Börse’s trading unit Clearstream is preparing to offer crypto custody and settlement services for institutional clients in 2025, driven by increasing demand for regulated digital asset infrastructure.
The German exchange group plans to provide Bitcoin (BTC) and Ether (ETH) custody services to its more than 2,500 institutional clients, with services expected to begin in April, according to a Bloomberg report on March 11.
Clearstream will deliver these digital asset services through Crypto Finance AG, a Switzerland-based subsidiary in which Deutsche Börse acquired a majority stake in 2021.
In addition, Deutsche Börse’s trading unit aims to expand services to include other cryptocurrencies and offer diversified services such as staking, lending, and brokerage capabilities.
Jens Hachmeister, Clearstream’s Head of Issuer Services and New Digital Markets, stated, “With this offering, we are creating a one-stop shop around custody, brokerage, and settlement.”
This move aligns with a growing institutional demand for regulated crypto services in Europe following the implementation of the Markets in Crypto-Assets Regulation (MiCA), which fully takes effect for crypto asset service providers on December 30, 2024.
The institutional offering comes nearly two months after Boerse Stuttgart Digital Custody became Germany’s first crypto asset service provider to receive a full MiCA license.
MiCA Regulation: Concerns About Overregulation in the Crypto Sector
While MiCA is seen as a significant step for global crypto regulation, some industry experts have raised concerns about the potential overregulation that could affect retail investors and drive crypto firms out of Europe.
The regulation aims to identify the “weak points of control” in the crypto space, which may lead to more scrutiny for retail investors and end-users of crypto platforms, according to Dmitrij Radin, founder of Zekret and CTO of Fideum.
Radin explained, “Retail users will be required to provide more information, which will be screened. They will be held accountable. Most Europeans will see taxation.”
This regulation also raises the possibility of enforcement actions against blockchain protocols that do not comply with MiCA standards. European governments may initiate legal proceedings against noncompliant platforms during the initial implementation phase.
Other blockchain regulation experts fear that MiCA could lead to consolidation among crypto firms with limited capital, potentially driving firms to the Middle East due to lenient regulations.
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