Deutsche Boerse acquires majority ownership of Crypto Finance AG

Published at: June 29, 2021

Deutsche Boerse has acquired a majority stake in Crypto Finance AG — a Swiss digital asset firm.

According to a release issued on Tuesday, the German stock exchange operator has bought a two-thirds stake in the digital asset company.

Though the financial details of the deal have yet to be made public, Deutsche Boerse revealed that the purchase sum was in the “moderate three-digit CHF million range.” The stock purchase agreement will be finalized in Q4 2021 once all parties receive the required green light from regulators.

As part of the announcement, Deutsche Boerse revealed that the acquisition was part of its efforts to upscale its crypto and digital asset offerings in Europe. Indeed, the stock market platform is reportedly looking to leverage Crypto Finance AG’s expertise in dealing with institutional crypto investors to deploy direct investment services as well as post-trade solutions like custody.

Crypto Finance, a regulated entity by Switzerland’s Financial Market Supervisory Authority, offers digital asset brokerage and custody solutions. Back in April 2020, the company raised $14.5 million in a Series B funding round that drew participation from major Swiss and Asian investors.

With the majority acquisition, the Swiss firm now becomes a part of the Deutsche Boerse Group. Jan Brzezek, founder and CEO of Crypto Finance, will continue to run the company founded in 2017.

Deutsche Boerse acquiring a majority stake in the Swiss digital asset firm is the latest step by the stock exchange operator’s growing crypto and blockchain involvement. As previously reported by Cointelegraph, the securities marketplace invested $12 million in a digital asset venture in partnership with Commerzbank.

The news is also another example of the emerging partnership between regulated entities in Germany and Switzerland concerning crypto and digital assets trading. Stock exchanges in both countries have previously allowed passporting of crypto exchange-traded products, allowing seamless listing procedures for such ETPs.

Both nations have also adopted similar crypto regulatory policies. The first phase of Switzerland’s comprehensive blockchain law went into effect earlier in the year, with phase two expected to happen in the summer.

While yet to enact a full-spectrum crypto and blockchain regulatory framework, German authorities legalized crypto securities back in December 2020.