Boerse Stuttgart’s Licensed Arm to Extend Crypto Custody Services
Great news for crypto investors in Europe! Boerse Stuttgart’s subsidiary, Blocknox, has been licensed to operate as a crypto custodian in Germany. This means that the company can offer custody services for digital assets to institutional investors across the continent, such as banks, brokers, asset managers, and family offices.
Boerse Stuttgart is one of Europe’s largest stock exchanges and the second largest in Germany. Through its subsidiary, Blocknox, the company can now offer both trading and custody solutions for its clients’ crypto assets. Blocknox is part of Boerse Stuttgart Digital, the stock market’s brand for all activities related to cryptocurrencies.
To obtain the license, Blocknox had to comply with strict regulations from the Bundesrepublik’s Federal Financial Supervisory Authority (Bafin). With the final license in hand, Boerse Stuttgart Digital can now offer institutional partners various solutions for accessing, trading, and keeping cryptocurrencies on behalf of clients. A high six-digit number of end customers are already benefiting from the excellent liquidity today.
According to Matthias Voelkel, CEO of Boerse Stuttgart Group, the license allows the company to become a fully regulated, one-stop shop for brokerage, trading, and custody of digital assets. “This makes us the infrastructure partner of choice for banks, brokers, asset managers, and family offices,” he said.
Oliver Vins, managing director of Boerse Stuttgart Digital and Blocknox, added that reliability, stability, and transparency are the basis for functioning crypto markets. He believes that the Bafin license asserts Boerse Stuttgart’s role as a provider of secure access to the growing market for digital assets.
Crypto custody services were legalized in Germany in January 2020, and companies that want to provide them are required to obtain a special permit. In February of that year, Boerse Stuttgart announced that Blocknox intends to offer such services to institutional clients. The subsidiary applied for regulatory approval and was initially granted the provisional status of a regulated financial service provider.