Deutsche Boerse Launches Regulated Crypto Trading Platform for Institutional Investors

In a power move reflecting the growing institutional interest in cryptocurrencies, Deutsche Boerse announced on Tuesday the launch of its regulated platform, the Deutsche Börse Digital Exchange (DBDX), designed exclusively for the spot trading of digital assets. This development follows the reception of additional licenses in February from German regulators and the platform is set to commence trading later this week.

The platform, targeted at institutional investors, will initially support trading in Bitcoin and Ethereum against the Euro. Settlement and custody services will be provided by Crypto Finance, the German arm of the platform, which obtained regulatory approval from BaFIN earlier this month. It’s worth noting that Deutsche Börse acquired Crypto Finance in 2021, marking the exchange’s commitment to expanding its footprint in the digital asset space.

Carlo Kölzer, Head of FX & Digital Assets at Deutsche Börse, expressed the significance of the new platform, stating, “Our new solution is a game changer for digital ecosystems. We aim to provide trusted market operations for crypto assets, ensuring transparency, security, and regulatory compliance for institutional clients in Europe.”

In its initial stages, the trading on the Deutsche Börse Digital Exchange will operate on a Request for Quote (RFQ) basis, allowing participants to request and receive quotes for the purchase or sale of cryptocurrencies. The platform plans to introduce multilateral trading in the future, providing a more dynamic and liquid market for participants.

This move by Deutsche Boerse aligns with the broader trend of traditional financial institutions integrating cryptocurrency services. While Deutsche Börse is one of the major stock exchanges to directly support crypto asset trading, it is not the first in Germany. The Boerse Stuttgart has been facilitating cryptocurrency trading since 2019.

In addition to its focus on cryptocurrency trading, Deutsche Börse has made strides in the digital asset and securities space. The exchange offers tokenization and digital securities depository services through its D7 platform. Furthermore, its involvement in HQLAᵡ, a distributed ledger technology (DLT) solution for collateral mobility, and the recent acquisition of FundsDLT, emphasizing DLT for fund distribution, showcase the exchange’s comprehensive approach to the evolving landscape of digital finance.