Deutsche Börse Group acquires controlling stake in Crypto Finance AG

Deutsche Börse Group has acquired a majority stake in the Crypto Finance AG holding. The deal will broaden the exchange group’s offering in the digital assets space.

We are now the majority shareholder of @CryptoFinanceAG! Through the acquisition, we further extend our offering for digital assets by providing a direct entry point for investments, including post-trade services such as custody. Learn more: https://t.co/trpKqOPbGa pic.twitter.com/OOJDI31Wub

— Deutsche Börse Group (@DeutscheBoerse) June 29, 2021

According to the press release, the deal is expected to close in the fourth quarter of 2021, subject to regulatory approval. Under the terms, Deutsche Börse Group will acquire a 66.6% controlling stake in Crypto Finance AG; the remaining securities will remain with the holding’s existing investors.

Founder and Chief Executive Jan Brzezek will also retain his stake and remain at the helm.

The parties did not disclose the financial terms of the purchase. The statement said that Crypto Finance AG would receive investments in a modest three-digit range of millions of Swiss francs.

Crypto Finance is registered in the Swiss canton of Zug, home to the so-called “Crypto Valley”. The holding offers institutional investors and professional market participants tools for custody and trading of more than 200 digital assets.

The holding’s activities are regulated by FINMA. In January 2021, its subsidiary Crypto Broker AG obtained a broker-dealer license.

Through the deal, Deutsche Börse Group aims to broaden its capabilities in cryptocurrencies, including post-trade services such as custody. The group seeks to provide major market players with a direct entry point for investments.

“Digital assets will transform the financial industry. Demand is growing from existing financial institutions seeking to interact with this new asset class and to find a reliable partner,” said Thomas Buch, a member of the Deutsche Börse Group management board.

According to him, the services of Crypto Finance AG will complement the exchange group’s existing initiatives, including the April investments in the DeFi platform for trading real estate and works of art 360X, as well as Bitcoin-backed exchange-traded notes listed on the Xetra trading venue.

In January 2021, trading volume of the exchange-traded product based on the first cryptocurrency with centralized clearing, BTCetc Bitcoin Exchange Traded Crypto, listed on Deutsche Börse Group’s platform, grew to the level of popular European index funds.

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