In a bid to expand its cryptocurrency offerings, German stock exchange Deutsche Boerse announced today that it will be acquiring a two-thirds stake in popular Swiss fintech Crypto Finance AG.
According to Reuters, the involved parties did not give specific details about the actual purchase price of the stakes, but it hinted that the value was above $100 million.
The deal is expected to be sealed in Q4 2020 pending when both parties get the relevant regulatory approval.
Even though Deutsche Boerse’s acquisition of Crypto Finance’s two-thirds stake would see it have the upper hand in its decision making, the German stock exchange noted that it would not make any changes to the existing management team.
Since the remaining shares will remain with existing investors, the founder of Crypto Finance, Jan Brzezek, will remain the CEO and other management team members will retain their position, the report added.
Deutsche Boerse to Expand Its Crypto Offerings
Under the deal, Deutsche Boerse plans to extend its offering of digital assets through the provision of direct market entry points and custodial services for its clients.
The exchange noted that Crypto Finance was chosen because it complements its crypto-related offerings like 360X and its centrally-cleared Crypto Exchange Traded Notes (ETNs), issued by 21 Shares, ETC Group.
Commenting on the initiative, Thomas Book, Executive Board Member for Trading and Clearing at Deutsche Boerse, expressed confidence in cryptocurrencies’ ability to transform the financial industry.
Book noted that there has been a surge in demand for cryptocurrency investments by various financial institutions.
However, the issue has always been to get a trusted party that will make the investments available to them, Book said.
“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,” Book added.
Crypto Finance Crypto Services
Launched in 2017, Crypto Finance AG is a FINMA supervised firm that offers cryptocurrency-related investments for institutional and professional clients.
Crypto Finance provides 24/7 trading brokerages for over 200 cryptocurrencies backed by a secure custody solution.
