The regulated crypto-asset ecosystem of the German stock exchange operator will be expanded across the European market.
Crypto Finance AG, a Swiss digital asset provider, has been bought by Deutsche Boerse.
The German stock market operator has purchased a two-thirds share in the digital asset company, as shown in a press release issued on Tuesday.
Though the deal’s financial details have yet to be made public, Deutsche Boerse revealed that the purchase sum was in the “moderate three-digit CHF million range.”
Once all parties have received regulatory approval, the stock purchase deal will be implemented in Q4 2021.
According to Deutsche Boerse, the acquisition is part of the company’s attempts to expand its crypto and digital asset operations across Europe.
Indeed, the stock exchange platform is said to be trying to use Crypto Finance AG’s experience dealing with institutional crypto investors to implement direct investment services as well as post-trade solutions such as custody.
Crypto Finance, which is licensed by the Swiss Financial Market Supervisory Authority, provides digital asset brokerage and custody services.
The company raised $14.5 million in a Series B investment round in April 2020, which included big Swiss and Asian investors.
The Swiss firm is now a part of the Deutsche Boerse Group as a result of the majority acquisition. Crypto Finance’s founder and CEO, Jan Brzezek, will continue to lead the company launched in 2017.
The stock exchange operator’s growing crypto and blockchain participation continues with the acquisition of a majority share in the Swiss digital asset startup by Deutsche Boerse.
As previously reported by Cointelegraph, the securities marketplace partnered with Commerzbank to invest $12 million in a digital asset initiative.
The announcement is also another indication of a growing collaboration between regulated businesses in Germany and Switzerland in the area of crypto and digital asset trading.
Both nations’ stock markets have already permitted crypto exchange-traded products to be passported, enabling for streamlined listing procedures for such ETPs.
Both countries have developed crypto regulatory policies that are similar. The first phase of Switzerland’s complete blockchain law took effect earlier this year, with the second phase due to take effect this summer.
German authorities legalized crypto securities in December 2020, despite the fact that they have yet to implement a full-spectrum crypto and blockchain regulatory framework.
