Deutsche Börse (DB) announced that its post-trade business Clearstream will be enhancing its custody service portfolio to crypto assets by using Crypto Finance, also a DB company, for sub-custody. The offering is expected to be launched in April.
The two largest cryptocurrencies by market capitalization, bitcoin and ether are the first crypto assets in scope of Clearstream’s offering. Further expansion into further crypto currencies will be considered, following client demand.
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.
Jens Hachmeister, head of Issuer Services & New Digital Markets at Clearstream, said in a statement: “Offering crypto custody is the next step on Clearstream’s journey to digitize 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.”
Stijn Vander Straeten, CEO Crypto Finance Group, said in a statement: “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. 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.