The service is designed to enable the settlement and custody of crypto trades from multiple trading venues within Clearstream, Deutsche Boerse's settlement arm. This move expands the German exchange's crypto offerings, following the launch of its institutional crypto trading platform last year.

Figure 1. Clearstream by Deutsche Boerse Offering Bitcoin and Ether Custody Services.

Starting in April, clients will be able to use Clearstream for custody of Bitcoin and Ether, the two largest cryptocurrencies, with the potential for additional assets based on demand. Deutsche Boerse's subsidiary, Crypto Finance, will serve as a sub-custodian. Figure 1 shows Clearstream by Deutsche Boerse Offering Bitcoin and Ether Custody Services.

"Offering crypto custody is the next step on Clearstream’s journey to digitize financial markets," said Jens Hachmeister, Clearstream's head of issuer services and new digital markets.

European financial institutions are expanding into cryptocurrencies following the introduction of the Markets in Crypto-Assets (MiCA) regulation by the European Union in 2023.

Deutsche Boerse introduced a regulated platform for institutional cryptocurrency trading in March last year, which has since been merged into its 360T subsidiary, according to a company spokesperson.

Meanwhile, the election of Donald Trump as U.S. President last year has fueled expectations of greater institutional involvement in crypto. This month, U.S. regulators also eased restrictions, making it easier for banks to engage in crypto activities.

Deutsche Boerse launched a regulated cryptocurrency trading platform for institutional investors in March last year, later merging it into its 360T subsidiary, a company spokesperson confirmed.

The election of Donald Trump as U.S. President last year has fueled expectations of increased institutional involvement in crypto, with U.S. regulators recently easing restrictions for banks engaging in crypto activities.

European banks are also expanding into the sector. On Monday, Spanish bank BBVA announced it had received approval from the country’s securities regulator to offer Bitcoin and Ether trading services in Spain.

Deutsche Boerse, a leading European financial exchange, is expanding its services by offering cryptocurrency custody and settlement through its subsidiary, Clearstream. This move marks a significant step in integrating digital assets into traditional financial markets. Starting in April, institutional clients will be able to custody Bitcoin and Ether, with the potential for additional cryptocurrencies based on demand.

How Clearstream’s Crypto Custody Works

Clearstream aims to streamline crypto trading by allowing assets from multiple trading venues to be settled and held within its infrastructure. The service will function similarly to traditional financial custody, providing institutional investors with secure and regulated access to crypto assets. Deutsche Boerse's subsidiary, Crypto Finance, will act as a sub-custodian, ensuring compliance with regulatory standards.

The Regulatory Landscape – MiCA and Institutional Adoption

The launch of this service aligns with Europe’s evolving regulatory framework for digital assets. The European Union’s Markets in Crypto-Assets (MiCA) regulation, introduced in 2023, has provided clearer guidelines for institutions engaging in crypto markets. Crypto Finance’s recent MiCA license acquisition further strengthens Deutsche Boerse’s position in offering regulated crypto services.

Global Trends – The U.S. Influence on Crypto Expansion

The growing interest in institutional crypto adoption isn’t limited to Europe. The election of Donald Trump as U.S. President last year has raised expectations for mainstream financial institutions to engage in crypto. Additionally, U.S. regulators have recently made it easier for banks to participate in crypto activities, further signaling global momentum toward institutional adoption.

The Future of Crypto Custody in Traditional Finance

With Deutsche Boerse’s entry into crypto custody, more European financial institutions are likely to follow. Spanish bank BBVA recently received regulatory approval to offer Bitcoin and Ether trading in Spain, reflecting a broader shift in traditional banking. As regulations evolve and demand increases, Clearstream’s role in bridging the gap between traditional finance and crypto could set a precedent for other global financial institutions.

Reference:

1. https://www.reuters.com/technology/deutsche-boerses-clearstream-offer-bitcoin-ether-custody-services-2025-03-11/
2. https://www.msn.com/en-xl/money/other/deutsche-boerse-s-clearstream-to-offer-bitcoin-and-ether-custody-services/ar-AA1AIJXH

Cite this article:

Priyadharshini S (2025),"Deutsche Boerse's Clearstream to Provide Custody Services for Bitcoin and Ether",AnaTechMaz, pp. 74