Deutsche Börse Group and the U.S.-based crypto exchange Kraken are working together to create a single path that links traditional markets with digital asset infrastructure. The announcement on Thursday noted that the goal of the partnership is to make it easier for businesses to find regulated crypto products in different areas.
The project would bring together spot crypto trading, tokenized financial instruments, and derivatives. This will make the market more integrated and provide it more liquidity. Stephan Leithner, the CEO of Deutsche Börse, asserted that the acquisition enables us to assist institutional clients in the digital asset era and provides access to digital capital markets.
Phased rollout includes FX integration
The merger will happen in stages and will involve numerous important Deutsche Börse platforms:
The 360T FX Network: In the first step, Kraken will connect directly with 360T so that it can get high-quality foreign currency liquidity. The change is aimed to make it easier for businesses to transform cash into bitcoin and make transactions more reliable.
Eurex Derivatives: The alliance wants to help Kraken have broader access to Europe’s regulated futures and options markets through Eurex-listed derivatives. This is a big step towards connecting digital assets with existing derivatives infrastructure.
xStocks and Tokenised Securities: Backed Finance will make “xStocks” that are backed by Kraken. These will be added to the 360X digital asset ecosystem at Deutsche Börse. As tokenisation becomes more popular, Kraken’s customers will also be able to buy ClearStream-held equities in tokenised form.
The partnership is a fantastic illustration of what happens when two infrastructures built for scale and trust meet. He also said that the alliance will help the financial sector be more open and work better.
Kraken grows its business in Europe
Kraken is still trying to improve its regulatory and operational presence in Europe. In September, the exchange started to offer xStocks with Backed Finance and got a lot of important licences, like MiFID and MiCA certifications. As more and more businesses look for legal ways to invest in digital assets, cooperating with Deutsche Börse is part of its larger ambition to grow.
Deutsche Börse’s Leithner expressed the company’s commitment to shaping the future of financial markets. Next step in altering the capital markets is to use both old and new technology together.