Deutsche Boerse’s Clearstream to Launch BTC and ETH Custody for Institutions: Report
Deutsche Börse’s post-trade unit, Clearstream, is set to expand its services into the world of cryptocurrencies, marking a significant move in the evolving financial landscape. The announcement reveals that Clearstream will introduce crypto custody and settlement services for institutional clients later this year, leveraging its majority-owned subsidiary, Crypto Finance, which will serve as the sub-custodian.
### Clearstream’s Offering
As reported by Bloomberg, Clearstream will kick off its crypto custody services with Bitcoin (BTC) and Ethereum (ETH) offerings for its existing client base of approximately 2,500 institutions starting next month. The organization is not stopping there; plans are underway to support additional cryptocurrencies along with expanded services that will encompass staking, lending, and brokerage functions.
Jens Hachmeister, the head of issuer services and new digital markets at Clearstream, commented, “With this offering, we are creating a one-stop shop around custody, brokerage, and settlement.” This multifaceted approach positions Clearstream to also cater to assets such as stablecoins and tokenized securities in the future, adapting to the dynamic needs of its clients.
Stijn Vander Straeten, CEO of Crypto Finance, highlighted that the development of these services has been in the pipeline for almost a year. He emphasized that the initiative will facilitate a smoother transition for banks and large institutions into the realm of digital assets, using technology and compliance procedures already familiar to them.
Clearstream stands as one of Europe’s largest clearing houses, boasting around $21.7 billion in assets under management as of January this year. Institutional clients will have the convenience of accessing these new crypto custody and settlement services through their existing accounts with Clearstream Banking SA.
### Growing Demand Under MiCA
The demand for such services has surged, particularly as traditional financial institutions seek to establish a foothold in digital assets. This trend is largely attributed to the regulatory clarity provided by frameworks like the Markets in Crypto-Assets Regulation (MiCA) in the European Union, which came into effect on December 30, 2024. Vander Straeten noted a significant uptick in demand from international banking clients, pointing out that management teams often expend considerable resources—up to €5 million—to create and sustain internal crypto capabilities. “Here is a chance to have that at zero additional cost,” he remarked.
This development follows the recent achievement by Boerse Stuttgart Digital Custody, which became the first crypto asset service provider in Germany to obtain complete authorization under MiCA. This regulation allows the provider to service banks, brokers, and asset managers as a recognized infrastructure in the digital assets sector.
In parallel, Spanish bank BBVA SA has recently received regulatory approval to offer crypto trading services to retail clients. The bank plans to launch trading for BTC and ETH through its mobile banking application, commencing with a select group of customers before extending services nationwide.
These movements underscore a pivotal moment for the intersection of traditional finance and the burgeoning crypto sector, indicating a future where digital assets are more seamlessly integrated into the financial ecosystem.
