Germany's Deutsche Boerse will begin offering cryptocurrency custody and settlement services to institutional clients next month. The service, which will initially support Bitcoin and Ether, will allow trading across various venues to be settled and held in Clearstream, Deutsche Boerse's settlement platform.

It is the latest move by the German exchange into the cryptocurrency sector, following the launch of its crypto trading platform for institutional investors last year.

Starting in April, clients will be able to use Clearstream for custody services for Bitcoin and Ether, with the possibility of adding more cryptocurrencies depending on demand. Deutsche Boerse's subsidiary, Crypto Finance, will act as a sub-custodian for these services.

However, this move comes as European financial institutions increasingly enter the cryptocurrency space, particularly following the European Union's introduction of the MiCA regulatory framework in 2023.

Deutsche Boerse's expansion into crypto follows similar moves by other major financial institutions, such as Bank of New York Mellon and State Street, which have already begun offering digital asset custody services.

The recent acquisition of a MiCA licence by Crypto Finance further solidifies the company's position in the growing digital assets market.

In addition to Deutsche Boerse, European banks are expanding their digital asset offerings, with Spanish bank BBVA receiving approval to offer Bitcoin and Ether trading services in Spain.

The involvement of more mainstream financial institutions highlights the increasing acceptance and integration of cryptocurrencies into traditional financial systems.

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