Deutsche Börse Group has acquired majority ownership in Crypto Finance AG. In a public statement, Deutsche Börse said this builds upon its ability to support digital assets by providing a direct point to invest in crypto as well as providing custody. Deutsche Börse said it paid “a moderate three-digit CHF million range” for its equity stake.
Crypto Finance is a Switzerland based digital asset platform that offers 24/7 trading and storage. Crypto Finance is a FINMA approved securities firm and is the first FINMA regulated digital asset platform in Switzerland. Currently, Crypto Finance offers trading in over 200 digital assets for both individual and institutional accounts. Crypto Finance also facilitates tokenisation and blockchain infrastructure services. The company has an asset management unit under FINMA regulation that allows investor to access digital asset via an active and rule-based alternative investment fund offering.
As part of Deutsche Börse Group, Crypto Finance will be able to scale the business and expand the range of digital asset services.
“Digital assets will transform the financial industry. There is increasing demand from established financial institutions who are looking to become active in this new asset class and want a trusted partner,” said Thomas Book, Executive Board Member for Trading and Clearing at Deutsche Börse. “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.”
“This is why we are excited to team up with a neutral partner like Deutsche Börse, who brings trust, reputation, and expertise in traditional financial market infrastructure. In combination with our proven expertise in crypto assets and the underlying technologies, we will now achieve our goals much faster. Together, we will enable thousands of financial institutions and professional investors in Europe to instantly enter this new asset class in a way they are familiar with.”
Deutsche Börse will control a two-thirds majority while the remaining shares will be held by existing investors, including Brzezek, who will continue to lead and manage the business.
The transaction is expected to close in the fourth quarter of 2021, following regulatory approvals.