The Frankfurt Stock Exchange, owned by Deutsche Börse, is gearing up to embrace the world of cryptocurrencies. The move is outlined in the recently unveiled “Horizon 2026” report, dated Nov. 7, where Deutsche Börse articulates its vision for the future.
Embracing Digital Platforms: A Key Priority
Deutsche Börse aims to solidify and expand its leading position in the realm of digital platforms. This will encompass both existing and emerging asset classes. The company foresees immense growth potential in the long term by leveraging new technologies to digitize established or nascent asset categories.
A pivotal aspect of this strategic shift is the accelerated development of the D7 digital securities registry. Built on blockchain technology, this registry is set to revolutionize the way securities are managed and traded.
Pioneering a Digital Asset Platform for Institutional Investors
Furthermore, Deutsche Börse plans to establish a cutting-edge digital asset platform exclusively catering to institutional investors. This platform will seamlessly facilitate tokenization, trading, settlement, and custody services for a spectrum of financial instruments, including securities, alternative assets, and cryptocurrencies.
While the report alludes to the inclusion of stablecoins and central bank digital currencies (CBDCs) in the digital asset platform, specifics about their role remain undisclosed. This signals a potential broadening of the platform’s offerings to accommodate these emerging forms of digital currency.
Frankfurt’s Foray into Crypto
While Frankfurt Stock Exchange’s move into crypto may seem unprecedented, it follows in the footsteps of other major exchanges. Boerse Stuttgart, Germany’s second-largest stock exchange, delved into cryptocurrency trading in April 2022.
Looking beyond borders, the London Stock Exchange Group is gearing up to provide clearing services for U.S. dollar-denominated cash-settled Bitcoin index futures and options contracts by 2024.
This isn’t the first encounter of the Frankfurt Stock Exchange with cryptocurrencies. In 2021, Deutsche Börse Xetra, its digital exchange, made headlines by listing the Litecoin exchange-traded product from the London-based ETC Group.