Boerse Stuttgart Stock Exchange Taps BaFIN License to Offer Crypto Custody
Ranking as the sixth largest stock exchange in the European Union and second in Germany, Boerse Stuttgart is committed to doubling down on its track record concerning its new crypto service offerings.
German stock exchange service provider Boerse Stuttgart Exchange has landed the license to offer a crypto custody service from the country’s top financial regulator BaFin. As reported by FinanceFeeds, the license will now position Boerse Stuttgart as a one-stop shop for service providers ranging from crypto brokerages and trading for institutional investors.
The license is the first of its kind in the country which has shown an extremely bullish affinity for digital currencies over the past few years. The license tapped by Boerse Stuttgart was secured by Blocknox GmbH, a part of the brokerage’s Digital arm. With the license, the outfit will now be serving banks across all of Europe, as well as brokers, asset managers, and family offices.
“This is the first time that an established market participant has been licensed to hold cryptocurrencies in custody without any acquisitions. This completes the unique infrastructure we offer: of all the traditional service providers operating in the European crypto market, we are now the only one-stop-shop that’s fully regulated by BaFin in Germany for brokerage, trading, and custody of digital assets. For banks, brokers, asset managers, and family offices, this makes us the infrastructure partner of choice.”
While Germany is known as a very promising economy for the growth of digital currencies, securing the license to operate in this country from BaFin is considered one of the most difficult endeavors. Securing the license is a vote of confidence in the preparedness of Boerse Stuttgart to meet the guidelines to adhere to extant laws governing the nascent industry.
Following the launch of a crypto trading platform by Boerse Stuttgart, the license is even more revered considering that it helps bolster the firm’s offering across the board.
Boerse Stuttgart to Contribute to Crypto Transparency
Despite the embrace of digital currencies by German authorities, there is still a deep focus on adherence to market tenets that can bolster transparency. Ranking as the sixth largest stock exchange in the European Union and second in Germany, Boerse Stuttgart is committed to doubling down on its track record concerning its new crypto service offerings.
“Reliability, stability, and transparency form the basis for well-functioning crypto markets. The BaFin license reinforces us on our path to provide financial institutions across Europe with secure access to a growing market for digital assets using these core principles,” said Oliver Vins, Managing Director of Boerse Stuttgart Digital and the custodian blocknox.
The advancement of the crypto ecosystem in Germany is constantly been used as a yardstick by critics of the United States Securities and Exchange Commission (SEC) who believe the regulator is using strong-arm tactics to stiffen crypto innovation.
One crucial justification in this regard is the approval of a spot Bitcoin Exchange Traded Fund (ETF) by BaFin, a product that is yet to make its way into American markets despite broad industry clamor.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
