Crypto Finance Gains Four BaFin Licenses in Preparation for Parent Company’s Launch of Deutsche Börse Digital Exchange – Ledger Insights

German regulator BaFin has recently accredited the German branch of Crypto Finance with four new licenses, marking an important step as Crypto Finance’s Swiss arm already falls under the regulation of Switzerland’s FINMA. Moreover, the parent company of Crypto Finance is the Deutsche Börse Group, which secured a major stake in the firm in 2021 as detailed here. As part of its strategic plans, Deutsche Börse is gearing up to introduce an institutional crypto trading platform, Deutsche Börse Digital Exchange (DBDX), within the current year.

Eric Viohl, Managing Director of Crypto Finance (Deutschland) GmbH, underscores the company’s dedication to providing a full spectrum of regulated services in Germany. “We distinguish ourselves through our commitment to supporting the full value chain, and we are excited to reach major milestones in Germany, where we can offer comprehensive, highly regulated services,” Viohl noted.

“Our suite of services extends past mere trading to cover settlement, secure storage, and post-trade processes, granting institutional investors an integrated platform for delving into the burgeoning sector of digital assets,” he added.

As the DBDX’s launch approaches, speculation mounts on how Crypto Finance will fit within this new infrastructure, with expectations pointing towards it being a pivotal component.

According to a representative from Deutsche Börse, speaking to Ledger Insights, Crypto Finance (Deutschland) GmbH is set to form a key part of Deutsche Börse’s crypto business framework, with the newly acquired licenses viewed as essential groundwork.

Last November, Deutsche Börse disclosed its foundational strategy for DBDX, conveying its objective to establish a secure marketplace for cryptocurrency transactions.

With a growing presence of institutional players in the cryptocurrency domain, there’s a notable expansion in the US with ventures like EDX Markets, and in the UK with platforms like Elwood Technologies and diversified exchanges such as abrdn’s Archax and Zodia Markets. Additionally, those in Switzerland, like the SIX Digital Exchange (SDX) and its Singapore joint venture AsiaNext, are contributing to this trend.