Cryptocurrencies and other digital assets are becoming increasingly popular, but pose a conundrum for some investors. Deutsche Börse wants to build trust and is investing.
Real estate and commodities such as gold remain high on the list as investments, but other alternative investments are becoming increasingly popular. Deutsche Börse Ag is also betting on this trend, acquiring a majority stake in Zug, Switzerland-based Crypto Finance AG. Crypto Finance enables professional and institutional investors to invest in digital assets, such as Bitcoin or Ether. More and more established financial institutions want to become active in this new asset class and are looking for a reliable partner, commented Thomas Book, Deutsche Börse’s Chief Trading & Clearing Officer. The goal is to build a fully regulated digital asset ecosystem for institutional investors in Europe, he said. Crypto Finance’s business is supervised by the Swiss Financial Market Supervisory Authority (FINMA). So while Deutsche Börse is focusing on professional investors for the time being, Stuttgart Stock Exchange is also offering a regulated trading venue for cryptocurrencies to retail investors. As there is currently a lot of ambiguity in this area, the European Union is looking to agree on regulation in September, which should come into force in 2022. This should further increase consumer confidence in these and other alternative assets. The current low interest rate environment is also contributing to this, making asset diversification appear to be a successful strategy for value protection and growth.