Deutsche Börse Embraces Crypto
The owner of the Frankfurt Stock Exchange, Deutsche Börse, has revealed its strategic plan for the coming years, and it includes a significant focus on crypto assets. The company’s “Horizon 2026” report, released on Nov. 7, outlines its goal to expand its position in digital platforms for both existing and new asset classes.
Deutsche Börse sees potential for growth in new technologies, particularly through the digitalization of asset classes. As a result, the company aims to accelerate the development of its blockchain-based D7 digital securities registry and establish a trading platform for digital assets. This platform will cater exclusively to institutional investors and provide services for tokenization, trading, settlement, and custody of securities, alternative assets, and cryptocurrencies.
The report also mentions stablecoins and central bank digital currencies, hinting at their potential inclusion on the platform. While this move signals a major shift for Deutsche Börse, it is not the first stock exchange to enter the digital asset space.
Continued Expansion into Crypto
In fact, Germany’s second-largest stock exchange, Boerse Stuttgart, began offering cryptocurrency trading to its customers in April 2022. Additionally, the London Stock Exchange Group is set to provide clearing services for United States dollar-denominated cash-settled Bitcoin index futures and options contracts in 2024.
Furthermore, Deutsche Börse Xetra, the digital exchange of the Frankfurt Stock Exchange, listed the Litecoin exchange-traded product from the London-based ETC Group in 2021. These developments highlight a growing trend of traditional financial institutions embracing crypto assets.
Hot Take: Traditional Finance Embracing Crypto
Deutsche Börse’s strategic shift towards crypto represents a significant milestone for traditional finance institutions entering the digital asset space. With plans to develop a dedicated platform for institutional investors and explore opportunities in blockchain technology, it is clear that established financial entities are recognizing the potential of crypto assets and seeking to capitalize on this emerging market.
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