German securities marketplace Deutsche Börse has launched its own cryptocurrency trading platform tailored for institutional clients, in collaboration with custody provider Crypto Finance. The platform, named Deutsche Börse Digital Exchange (DBDX), offers a regulated and secure environment for crypto trading, settlement, and custody.
DBDX initially operates on a request-for-quote (RfQ) basis, where businesses solicit quotes from select suppliers. This will later transition to a multilateral trading facility, facilitating the exchange of financial instruments among multiple parties.
The platform aims to serve clients in Germany and other European markets, focusing on transparency, security, and regulatory compliance. Carlo Kölzer, head of digital assets at Deutsche Börse, views the launch as a significant step towards the company’s Horizon 2026 strategy to lead the digitalization of asset classes.
The initiative follows Deutsche Börse’s announcement in late 2023 regarding its intention to establish a digital asset platform. In February, Crypto Finance obtained four licenses from the German Federal Financial Supervisory Authority (BaFin), enabling regulated digital asset trading, settlement, and custody in Germany. This regulatory milestone paved the way for the DBDX launch.
Deutsche Börse’s foray into cryptocurrency trading builds upon its previous involvement in the industry. The company’s electronic trading platform, Xetra, has listed various cryptocurrency-related investment products, including Bitcoin and Ether exchange-traded products from major European issuers like 21Shares. Moreover, Deutsche Börse has been exploring blockchain technology for operations such as securities financing.
Overall, Deutsche Börse’s entry into cryptocurrency trading underscores its positive stance towards digital assets and its commitment to embracing innovation in the financial sector.