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D. Boerse to offer crypto settlement services via

Clearstream

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Starts with bitcoin, ether, considering other coins later

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European financial institutions making crypto moves

By Elizabeth Howcroft

March 11 (Reuters) - Germany's Deutsche Boerse

will offer cryptocurrency custody and settlement

services for institutional clients from next month, the company

said on Tuesday, becoming the latest firm to offer custody

management for bitcoin and ether.

The service aims to allow crypto trading from various

trading venues to be settled and held in Clearstream, Deutsche

Boerse's settlement business. It marks an expansion into crypto

services for the German exchange, after last year it launched

its own crypto trading platform for institutional investors.

From April clients will be able to use Clearstream for

bitcoin and ether - the two largest

cryptocurrencies - and the company is considering adding

additional cryptocurrencies, based on demand. Deutsche Boerse's

subsidiary Crypto Finance will act as a sub-custodian.

"Offering crypto custody is the next step on Clearstream's

journey to digitise financial markets," said Jens Hachmeister,

Clearstream's head of issuer services and new digital markets.

European financial institutions are increasingly making

moves in cryptocurrencies, after the European Union introduced a

landmark regulatory framework, the Markets in Crypto-Assets

regulation (MiCA) in 2023.

The news, first reported by Bloomberg, comes after Crypto

Finance obtained a MiCA licence in January.

Other custody managers to offer crypto custody services

include Bank of New York Mellon ( BK ), which began offering it

in 2022, and State Street, which expanded its digital

asset services last year.

Deutsche Boerse launched a regulated platform for

institutional investors to trade cryptocurrencies in March last

year, as part of a separate entity which has been merged into

Deutsche Boerse's 360T subsidiary, a spokesperson for Deutsche

Boerse said.

The election of Donald Trump as U.S. President last year has

raised expectations of more mainstream financial institutions

getting involved in crypto, and U.S. regulators this month made

it easier for banks to engage in crypto activities.

Some European banks are also expanding. Spanish bank BBVA

said on Monday it had received approval from the

country's securities regulator to offer bitcoin and ether

trading services in Spain.

Bitcoin rallied sharply following the election of Trump, but

has since declined.