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Major Exchange Organization Deutsche Börse Group Makes Acquisition to Expand Its Digital Asset Offering

Tue, 06/29/2021 - 11:15
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Alihuseyn Gulu-Zada
German stock exchange operator Deutsche Börse Group has acquired shares of Crypto Finance AG
Major Exchange Organization Deutsche Börse Group Makes Acquisition to Expand Its Digital Asset Offering
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German stock exchange organization Deutsche Börse Group has announced the acquisition of a majority stake in the Swiss financial technology company Crypto Finance AG.

Deutsche Börse announced in a press release Tuesday that it had acquired 2/3 of the controlling stake in Crypto Finance AG, founded in 2017. While there were no exact figures on the amount paid by Deutsche Börse, it was indicated that it could be more than 100 million Swiss francs.

Crypto Finance AG, regulated by Swiss financial regulator FINMA, offers its corporate and professional clients investment instruments for more than 200 digital assets. The company also provides its clients with trading and custody services.

In addition, it will create the opportunity for professional and institutional clients to invest directly in digital assets without having to build their own infrastructure and operating systems.

In turn, Deutsche Börse will provide a "direct entry point" for investments in digital assets (cryptocurrencies) through Crypto Finance AG. The services the company will provide will additionally include post-processing services, including storage. 

Deutsche Börse also announced that Jan Brzezek, founder of Crypto Finance AG, will continue to serve as CEO.

Thomas Book, a member of Deutsche Börse's Trading and Clearing Council, is confident that digital assets will change the financial industry. In his view, there is a growing demand from established financial institutions to use this new asset class.

The parties are expected to finalize the deal between them in the last quarter of this year after expected regulatory approval.

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About the author

Alihuseyn graduated from Yale University with a focus on linguistics and philosophy. He has worked as a journalist-analyst for Trend News Agency. At the same time, he is an academically trained singer (baritone) and a composer. Alihuseyn has been involved in cryptocurrency and blockchain since 2017 and is an enthusiast in this field, considering blockchain technology revolutionary and capable of changing society. In this area, he has written several theoretical and analytical pieces.