In a significant move within the crypto industry, Crypto Finance, a brokerage firm under the Deutsche Börse umbrella, has successfully obtained a quartet of licenses from BaFin, Germany’s financial regulatory authority. This strategic development is set to bolster the firm’s presence in the European sector by offering a regulated platform for digital asset trading, custody, and settlement services.

Securing BaFin’s Approval

Crypto Finance (Deutschland) GmbH, the German arm of the digital asset brokerage, announced on Monday the acquisition of four pivotal licenses from the German Federal Financial Supervisory Authority (BaFin). The firm’s CEO, Stijn Vander Straeten, expressed enthusiasm over meeting BaFin’s rigorous regulatory standards, which solidifies their position as a recognized crypto custody provider in Germany.

A Strategic Acquisition by Deutsche Börse

The Swiss-based fintech, Crypto Finance, became a part of the Deutsche Börse group following a majority stake acquisition in 2021. Thomas Book, who serves on the executive board for Trading & Clearing at Deutsche Börse, pointed out that the move was driven by increasing interest from established financial entities in the cryptocurrency domain. While the exact details of the acquisition remain under wraps, the expansion of services, including post-trade solutions like custody, was a key motivator.

Crypto Finance’s Growth Trajectory

Since its inception in 2017 by founders Jan Brzezek and Tobias Reichmuth, Crypto Finance has been on an upward trajectory, providing brokerage services for a portfolio of over 200 cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH). The company has also successfully completed four funding rounds, raising upward of $41 million with notable investors like Matthias Kroener and Lingfeng Capital, as per Crunchbase’s data.

Looking Forward

The German market is poised to witness a significant uptick in digital asset services, thanks to Crypto Finance’s recent regulatory achievements. With the backing of Deutsche Börse and the new licenses in hand, Crypto Finance is well-positioned to cater to the growing demand for cryptocurrency trading and services in Europe.