Deutsche Börse’s post-trade business, Clearstream, is making an undisclosed investment in fintech start-up Digital Vault Services (DVS). The investment is pending regulatory approval and finalization of legal documentation. This funding will help Digital Vault Services expand its market infrastructure solution offering to corporates and financial institutions. The investment is expected to result in a minority stake in Digital Vault Services and is projected to be finalized in the second half of 2024. Once completed, Digital Vault Services’ “Guarantee Vault” will be integrated with D7, Deutsche Börse and Clearstream’s digital post-trade platform.
Jens Hachmeister, head of issuer services and new digital markets at Clearstream, emphasized the importance of digital leadership in Deutsche Börse Group’s Horizon 2026 strategy. By combining DVS’s innovative approach to digital bank guarantees with D7’s expertise in digitizing securities and Clearstream’s role in global financial markets, significant growth and value delivery for clients and the industry as a whole are anticipated. This collaboration is part of Deutsche Börse’s commitment to digital transformation and innovation within the financial services industry.
Deutsche Börse recently introduced the Deutsche Börse Digital Exchange (DBDX), a regulated spot platform for crypto assets tailored to institutional clients. The platform offers a fully regulated environment for crypto asset trading, settlement, and custody. Trading on the DBDX platform will occur on a Request for Quote (RfQ) basis, followed by multilateral trading. Deutsche Börse will manage the trading venue, while Crypto Finance will provide settlement and custody services to facilitate smooth operations.
The trend of digital asset adoption in Germany is on the rise, with major players like Landesbank Baden-Württemberg and DZ Bank entering the crypto space. Landesbank Baden-Württemberg announced a partnership with Bitpanda to offer crypto-asset custody services in the second half of 2024. Bitpanda is set to collaborate with the German bank to provide corporate clients with a regulated platform for crypto-asset custody and procurement. Additionally, DZ Bank, the second largest bank in Germany, is planning to pilot retail crypto trading in 2024 to cater to private customers seeking independent access to cryptocurrencies without financial advice.
The collaboration between Clearstream, Deutsche Börse, and Digital Vault Services reflects a strategic move towards integrating digital solutions into traditional financial services infrastructures. By combining expertise in digital banking guarantees, securities digitization, and global financial market operations, the partnership aims to drive growth and value creation for clients. The Deutsche Börse Digital Exchange further solidifies the organization’s commitment to embracing the digital transformation of the financial industry and providing institutional clients with a regulated platform for crypto asset trading, settlement, and custody services.
The partnership between Landesbank Baden-Württemberg and Bitpanda, along with DZ Bank’s plan to pilot retail crypto trading, signifies the increasing adoption of digital assets in Germany. These initiatives demonstrate a shift towards embracing digital currencies and technologies within the country’s financial sector. With key players like Deutsche Börse and major banks entering the crypto space, Germany is poised to play a leading role in advancing digital asset adoption and innovation within the European financial services landscape.
