Deutsche Boerse Group has acquired a majority stake in Crypto Finance, a financial group under consolidated FINMA supervision that offers trading, storage, and investment in digital assets to institutional and professional clients.
The acquisition will see Deutsche Boerse further extend its offering for digital assets by providing a direct entry point for investments, including post-trade services such as custody.
Crypto Finance Group offers trading and brokerage of more than 200 digital assets in combination with an in-house custody solution.
According to Deutsche Boerse, Crypto Finance bridges the problem of liquidity fragmentation in the market.
An asset management unit under FINMA regulation also enables investor access to the digital asset class via an active and rule-based alternative investment fund offering.
As part of Deutsche Boerse Group, Crypto Finance will be able to further scale the business and expand the range of digital asset services.
Deutsche Boerse says it also intends to make Crypto Finance’s offering easily accessible for participants via its established platforms.
As part of the deal, Deutsche Boerse will hold a two-thirds majority in the 2017-founded fintech.
The remaining shares stay with existing investors, including CEO and founder Jan Brzezek, who will continue to lead and manage the business.
The transaction is expected to close in Q4 2021, following regulatory approvals.
Thomas Book, executive board member for trading and clearing at Deutsche Boerse, says: “We are excited that Crypto Finance is joining the group. The team is an ideal strategic fit, and will help us tremendously on our way to building a trusted and fully regulated digital asset ecosystem for institutional investors in Europe.”
“Crypto Finance perfectly complements our recent offerings like 360X, the innovative DLT-based platform for serial marketplace creation, and our leading, centrally-cleared crypto ETNs,” Book comments.
Jan Brzezek, CEO and founder, of Crypto Finance, adds: “Since the beginning, our goal was to bridge the old and new worlds. This is why we are excited to team up with a neutral partner like Deutsche Boerse, who brings trust, reputation, and expertise in traditional financial market infrastructure.”
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