Deutsche Börse Group has acquired a majority stake in Crypto Finance AG, an independent financial group under consolidated FINMA supervision.
Deutsche Börse will hold a two-thirds majority in the 2017 founded fintech for an investment in a “moderate three-digit CHF million range”.
Crypto Finance AG offers institutional and professional clients trading, storage, and investment in digital assets. The acquisition will help the banking group build a trusted and fully regulated digital asset ecosystem in Europe.
Crypto Finance offers 24/7 trading and brokerage of more than 200 digital assets in combination with a highly secure in-house custody solution.
Professional and institutional clients can directly invest in digital assets, without having to set-up their own infrastructure and operational frameworks.
The crypto specialist also provides custody solutions, and tokenisation and blockchain infrastructure services. Deutsche Börse Group will help further scale the business and expand the range of digital asset services.
Thomas Book, Executive Board member for Trading & Clearing at Deutsche Börse, said: “Digital assets will transform the financial industry. There is increasing demand from established financial institutions who are looking to become active in this new asset class and want a trusted partner.
“We are excited that Crypto Finance is joining the Group. The team is an ideal strategic fit and will help us tremendously on our way to building a trusted and fully regulated digital asset ecosystem for institutional investors in Europe. Crypto Finance perfectly complements our recent offerings like 360X, the innovative DLT-based platform for serial marketplace creation, and our leading, centrally-cleared crypto ETNs.”
Jan Brzezek, CEO & Founder, Crypto Finance AG, said: “Since the beginning, our goal was to bridge the old and new worlds. This is why we are excited to team up with a neutral partner like Deutsche Börse, who brings trust, reputation, and expertise in traditional financial market infrastructure.
“In combination with our proven expertise in crypto assets and the underlying technologies, we can now achieve our goals much faster. Together, we will enable thousands of financial institutions and professional investors in Europe to instantly enter this new asset class in a way they are familiar with.”
One thid of the shares will remain with existing investors, including CEO and founder Jan Brzezek, who will continue to lead and manage the business.
The parties expect to close the transaction in the fourth quarter of 2021, following regulatory approvals.