Deutsche Boerse AG is considering offering cryptocurrency-related products, Bloomberg has reported.
The newswire quoted the company’s head of clients, products and core markets, Jeffrey Tessler, who said that Deutsche was “deep at work with it”. However, he admitted that at the moment, the company was not ready to launch such an offering
“Before we move forward with anything like Bitcoin we want to make sure we understand the underlying transaction which isn’t the easiest thing to do,” Tessler said on Wednesday at an industry event in London, organised by Association for Financial Markets in Europe. “We want to understand the volatility and make sure clients are in line and make sure regulators are in line,” he added, as quoted by Bloomberg.
In December, US derivative marketplace operators Cboe Global Markets and CME Group launched Bitcoin futures contracts. These moves by Deutsche’s US rivals prompted a very positive reaction within the crypto community and contributed to Bitcoin’s record-breaking rally in December. So far, major European exchanges haven’t been able to follow suit, as they are mindful of regional authorities’ cautious approach to regulating the nascent market, Bloomberg notes. Tessler acknowledged on Wednesday that Deutsche Boerse was “not at the same stage” as CME.
This isn’t the first time the German company, which owns the Frankfurt Stock Exchange, has indicated that it has interest in tapping into the blockchain space. In late March Deutsche announced a plan to develop a blockchain-based solution for securities lending, in partnership with financial management firm HQLAX and blockchain start-up R3. The companes announced that the solution would be powered by R3’s Corda blockchain platform, while Deutsche’s Eurex Repo platform would provide the trading layer for the system. The German company will also assume a lead role in the custody agnostic, post-trade processing layer, “designed to interoperate with multiple collateral agents and custodians”.