Clearstream, Deutsche Börse’s post-trade business, is making an undisclosed investment in the fintech start-up Digital Vault Services (DVS). This investment is subject to regulatory approvals and will be used by DVS to expand its offering as a market infrastructure solution for corporates and financial institutions. It is expected to result in Deutsche Börse acquiring a minority stake in DVS by the second half of 2024. Once completed, Digital Vault Services’ “Guarantee Vault” will be integrated with D7, Deutsche Börse’s digital post-trade platform, allowing for the expansion of its digital asset product portfolio to non-securities.
Deutsche Börse’s investment in DVS aligns with its Horizon 2026 strategy, focusing on digital leadership. Jens Hachmeister, head of issuer services and new digital markets at Clearstream, believes that DVS’s innovative approach to digital bank guarantees, combined with D7’s expertise in digitizing securities and Clearstream’s market presence, will drive significant growth and provide value to clients and the financial industry as a whole. This strategic alignment with Digital Vault Services complements Deutsche Börse’s continued efforts to innovate in the digital asset space.
In March, Deutsche Börse launched the Deutsche Börse Digital Exchange (DBDX), a regulated spot platform for trading crypto assets targeting institutional clients. The platform offers a fully regulated ecosystem for trading, settlement, and custody of crypto assets. Trading on the DBDX platform occurs on a Request for Quote (RfQ) basis, followed by multilateral trading, with Deutsche Börse operating the venue and Crypto Finance providing settlement and custody services. This initiative underscores Deutsche Börse’s commitment to expanding its presence in the crypto asset market.
Germany’s adoption of digital assets is on the rise, with companies like Landesbank Baden-Württemberg and Bitpanda partnering to offer crypto asset custody services starting in the second half of 2024. Bitpanda will work with the German bank to provide regulated platforms for corporate clients to custody and procure crypto assets using its “investing-as-a-service” infrastructure. Additionally, DZ Bank, the second-largest bank in Germany, is set to launch a pilot program for retail crypto trading in 2024, catering to private clients who wish to trade cryptocurrencies independently without financial advice.
Deutsche Börse’s collaboration with Digital Vault Services and the launch of DBDX reflect the growing interest in digital assets within Germany’s financial industry. With investments in fintech start-ups and the establishment of regulated crypto trading platforms, companies like Deutsche Börse are positioning themselves as key players in the digital asset space. As more traditional financial institutions embrace digital assets and blockchain technology, Germany is poised to become a significant hub for innovation in the evolving financial landscape. The increasing adoption of digital assets by banks and other financial institutions further solidifies Germany’s position as a leader in the digital economy.
