Kraken and Deutsche Börse roll out crypto expansion plans in new partnership

Kraken and Deutsche Börse are expanding their shared ambition to bridge traditional financial markets with the digital-asset economy through a multi-layered partnership built on regulated infrastructure, tokenization capabilities, and institutional market access.

The program builds on Deutsche Börse’s acquisition of a majority stake in Crypto Finance, a FINMA-regulated provider of trading, custody, and investment services for digital assets. Together, the companies shared plans for banks, asset managers, and fintechs to access compliant crypto services alongside established securities markets.

Deutsche Börse expands digital-asset infrastructure through Crypto Finance

In December 2021, Deutsche Börse acquired Crypto Finance and laid the basis of a European-regulated digital-asset ecosystem. The transaction was positioned as the foundation for developing an open and trustworthy infrastructure that will support trading, custody, post-trade activities, and tokenization models.

CEO Jan Brzezek and the existing management team retain a large stake and are guiding the firm’s expansion across Germany and Singapore. The company is also expanding its product and service portfolio to meet the growing demand from banks, asset managers, fintechs, and financial intermediaries seeking regulated access to digital assets.

Kraken connects to 360T and brings institutional crypto access to banks

​​The new alliance expands Deutsche Börse’s strategy to include Kraken’s connection to traditional market infrastructure. The first step will involve integrating Kraken into 360T, a foreign-exchange trading platform owned by Deutsche Börse Group. 

Kraken will also launch Kraken Embed, a white-label infrastructure product, to enable banks and fintechs to offer compliant crypto trading and custody services under their own brand. Institutions do not need to develop wallet infrastructure or trading engines internally to implement the functionality of digital assets; Kraken and Crypto Finance provide the underlying technology and regulatory compatibility.

The alliance also extends to regulated derivatives. Following regulatory approval, Eurex-traded futures and options will be made available on Kraken, enabling its international customers to offer their clients access to one of the largest derivatives hubs in Europe.

Meanwhile, Deutsche Börse Group’s customers will be able to trade cryptocurrencies and other derivatives on the platforms of Crypto Finance and Kraken. Custody of these activities will be based on Clearstream and Crypto Finance, aligning with European customary standards.

Tokenized equities and Clearstream-linked digital distribution

One of the main aspects of the agreement is on tokenization. Kraken and Deutsche Börse will combine xStocks, the tokenized-equity system being built as part of the 360X system, to expand access to digital transcriptions of conventional securities. 

In a recent development, Kraken has planned to acquire Backed Finance, the issuer of xStocks, which would solidify its role in the issuance of tokenized assets ahead of its planned public stock offering in 2026. The association will also work towards facilitating the issuance of securities held in custody at Clearstream in tokenized form to the Kraken client base.

Executives from both organizations described the partnership as a move in market modernization. Deutsche Börse’s Head of Cash Market, Eric Leupold, highlighted Crypto Finance’s technology as crucial to facilitating institutional entry into digital assets.

Crypto Finance CEO Jan Brzezek highlighted growing institutional demand for trustworthy partners in digital markets. In addition, Kraken highlighted that combining traditional and digital infrastructures across asset classes lays the foundation for a more open and connected financial system.

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