Deutsche Boerse's Clearstream to Offer Bitcoin & Ether Custody in 2025 - Blockonomi
by Nicholas Say · BlockonomiClearstream, a subsidiary of Deutsche Börse Group, is set to offer cryptocurrency settlement and custody services targeting institutional clients this year, Bloomberg reported on March 11.
Clearstream is making it easier and safer for large financial institutions to participate in the cryptocurrency market.
The leading European provider of post-trading services will start with Bitcoin (BTC) and Ether (ETH), the two largest cryptocurrencies by market capitalization, with plans to expand its services to include other cryptocurrencies.
A Big Ramp
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Serving over 2,500 customers and handling more than 250,000 transactions daily, Clearstream currently manages approximately €20 trillion in custodial assets. The firm is partnering with Crypto Finance, a Deutsche Boerse subsidiary, as a sub-custodian, to bring the offerings to its customers next month.
Clearstream also sets its sights on other services like staking, lending, and brokerage. The firm’s ultimate goal is to provide a comprehensive suite of services encompassing custody, brokerage, and settlement, simplifying crypto management for institutions.
Clearstream’s entry into the crypto custody market is expected to bring a huge amount of traditional finance infrastructure into the crypto space. The move is also anticipated to onboard more institutional investors, accelerate mainstream adoption, and enhance regulatory compliance within the digital asset ecosystem.
Growing Demand from Institutional Clients
With this plan, Clearstream will join a growing number of major banks worldwide incorporating crypto services.
Over the past few months, several key banking players reportedly have debuted programs for digital asset custody, explored partnerships with crypto-native firms, and sought regulatory approvals to offer trading and investment services.
The trend is particularly strong across German banks. Last month, DekaBank, a major German asset manager with €377 billion in assets under management, officially launched cryptocurrency trading and custody services for institutional clients.
The offerings, exclusively available to institutional investors, come after nearly two years of development and obtaining a crypto custody license from Germany’s Federal Financial Supervisory Authority (BaFin) under the German Bank Act.
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Increased regulatory clarity, especially with the implementation of the European Union with the Markets in Cryptoassets (MiCA) regulation, is one of the key factors driving more TradFi players to the digital asset space.
The demand for crypto support from banking clients has been very high since MiCA went into effect.
Not only in the EU, prospective regulatory clarity also plays a key role in the US market. Following Trump’s inauguration and several regulatory shifts, U.S. major banks have publicly expressed their interest and plans to enter the crypto custody space.
One of the largest custody banks globally, BNY Mellon has received regulatory approval for digital asset custody and has been actively developing its crypto services.
Citi is actively exploring crypto custody services to cater to institutional clients. The bank has been involved in digital asset initiatives, including tokenization projects and partnerships with firms like Ripple-owned Metaco to build its custody infrastructure.
While Citi has not provided a specific timeline, its efforts reflect growing institutional interest in digital assets and the need for secure custody solutions.
State Street also plans to roll out its crypto custody services by 2026. In preparing for this move, the bank has formed partnerships with firms like Taurus SA for custody technology. State Street has been involved in tokenization projects and actively working on integrating digital assets into its asset servicing framework.
The Office of the Comptroller of the Currency (OCC) has recently clarified that national banks and federal savings associations can offer crypto custody and stablecoin services without prior regulatory approval.
Banks are required to maintain strong risk management controls similar to those used for traditional bank activities. The OCC has also distanced itself from earlier warnings about the volatility and operational risks associated with crypto.