Boerse Stuttgart Digital’s Subsidiary Receives Crypto Custodian License by BaFin

• The organization can now provide services to institutional investors that deal in crypto.
• Boerse Stuttgart Group has consolidated all of its crypto and digital asset activities.

The German Federal Financial Supervisory Authority (BaFin) issued the final license as a cryptocurrency custodian to Boerse Stuttgart Digital’s subsidiary, blocknox GmbH on Thursday. This comes at a time when the stock markets throughout the world have begun to recover from the recent plunge caused by the downfall of major banks.

Trading and custody solutions are anticipated to be used by European banks, brokers, asset managers, and family offices by Germany’s second-biggest stock exchange. According to Boerse Stuttgart Group CEO Matthias Voelkel, this is the first time a well-known player in the market has acquired permission to act as a custodian for digital assets.

Eyeing Institutional Investors

The statement states that the Boerse Stuttgart Group has consolidated all of its cryptocurrency and digital asset activities under the name Boerse Stuttgart digital. The approval would allow the digital business based out of Boerse Stuttgart to provide services to institutional investors that deal in cryptocurrency.

Nasdaq, which operates an exchange, was reported to soon include cryptocurrency custody services. It is anticipated, however, that by the end of the second quarter, it will be available. It is expected that this change would increase the variety of crypto-related services available.

Nevertheless, the exchange group announced in September 2022 that it will provide Bitcoin (BTC) and Ethereum (ETH) custody services initially. Institutional investors will be the first to get access to this service.

Meanwhile, the U.S. Commodities Futures Trading Commission (CFTC) has launched a lawsuit against Binance, the biggest cryptocurrency exchange in the world, and its CEO “CZ,” alleging that they have broken regulations pertaining to cryptocurrency trading and derivatives.