Deutsche Boerse completes CHF100 million acquisition of Crypto Finance

abdelaziz Fathi

German stock exchange operator Deutsche Boerse confirmed on Thursday that it has completed the acquisition of a majority stake in Swiss fintech Crypto Finance.

Merger of Equals - LSE and Deutsche Boerse?

The deal was initially signed back in June and involved buying a two-thirds majority shareholding in the FINMA-regulated business. Crypto Finance is a provider of trading, custody, and investment services for digital assets.

Through the acquisition, Deutsche Börse aims to further extend its digital assets capabilities by providing a direct entry point for investments, including post-trade services such as custody. It will also leverage the acquisition to offer wide range of digital assets to existing customers and new market participants via their established platforms.

Deutsche Boerse didn’t disclose the purchase price but said it was a “moderate three-digit CHF million range,” which means it paid more than 100 million Swiss francs. Further terms of the transaction were not disclosed.

The remaining stake stays with existing investors, including CEO and founder Jan Brzezek. He will remain chief executive along with the existing management team to lead the Zug-based business, which is regulated by the Swiss regulator.

Eric Leupold, Head of Cash Market at Deutsche Börse, states: “Thanks to Crypto Finance’s proven expertise and the technologies they have developed, we can now enable financial institutions and professional investors to enter the digital asset market. This is a step further in our digital asset strategy.”

Jan Brzezek, CEO and co-founder of Crypto Finance explains: “Established financial institutions increasingly want to start investing in digital assets and are looking for a trustworthy partner. With its esteemed reputation and broad expertise in operating financial market infrastructure, Deutsche Börse garners this trust. We are very excited to continue our success story with our colleagues, existing and new clients and partners.”

While the takeover is definitely interesting, Deutsche Boerse is not the only one attempting to build a compliant crypto offering on such a highly regulated level. Many exchanges are also working on similar projects, yet in varying stages of offering clients access to digital securities exchanges.

Back in 2019, Germany’s second-largest stock exchange, Boerse Stuttgart Group, has gone live in full capacity with its trading venue for digital assets. Called ‘Boerse Stuttgart Digital Exchange (BSDEX),” the crypto venue is available to all users in Germany and also for residents in the European Economic Area (EEA).

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