Europe’s Top Exchange Operator to Invest in Digital Vault Services

Tanzeel Akhtar

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| 2 min read

Europe’s Top Exchange Operator to Invest in Digital Vault Services

Clearstream, Deutsche Börse’s post-trade business is investing an undisclosed amount in the fintech start-up Digital Vault Services (DVS).

Deutsche Börse, one of Europe’s biggest exchange operators, said the Clearstream investment is subject to applicable regulatory approvals and finalization of legal documentation.

The funding will be used by Digital Vault Services to broaden its offering as a market infrastructure solution for corporates and financial institutions. The investment will be part of an exchange for a minority stake in Digital Vault Services and is expected to be completed in the second half of 2024, subject to regulatory approval.

Once completed Digital Vault Services “Guarantee Vault” will be combined with D7, the digital post-trade platform of Deutsche Börse and Clearstream. This allows D7 to expand its digital asset product portfolio to non-securities.

“Digital leadership is a central part of Deutsche Börse Group’s Horizon 2026 strategy,” said Jens Hachmeister, head of issuer services and new digital markets at Clearstream, in a press release.

“We are convinced that DVS’s innovative approach to digital bank guarantees, combined with D7’s track record in digitising securities and Clearstream’s central role in global financial markets, will drive significant growth and deliver value for our clients and ultimately the entire financial industry,” adds Hachmeister.

Deutsche Börse Digital Exchange

In March, Deutsche Börse launched a new regulated spot platform for crypto assets targeting institutional clients. In an announcement, the German stock exchange said the platform dubbed the Deutsche Börse Digital Exchange (DBDX) offers a fully regulated ecosystem for the trading, settlement and custody of crypto assets.

Trading on the DBDX platform will take place on a Request for Quote (RfQ) basis, followed by multilateral trading. Deutsche Börse will operate the trading venue and Crypto Finance will provide settlement and custody services.

Digital Asset Adoption in Germany Increasing

On Monday, German federal bank Landesbank Baden-Württemberg announced it had entered a crypto partnership with Bitpanda to offer crypto-asset custody services in the second half of 2024. Bitpanda said over the next few months it will work with the German bank to provide corporate clients with a regulated platform using its“investing-as-a-service” infrastructure for crypto-asset custody and procurement.

Germany’s DZ Bank to Pilot Crypto Trading 2024

In February, it emerged DZ Bank, the second largest bank in Germany, is also planning to begin a retail crypto trading trial this year. The service will be available for private customers who have access to cryptocurrencies independently without seeking financial advice.

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