Boerse Stuttgart Subsidiary Launching Institutional Crypto Custody Services

Blocknox, a subsidiary of the second-largest German stock exchange, is expanding its crypto custody service to institutional players.

AccessTimeIconFeb 18, 2020 at 12:10 p.m. UTC
Updated Sep 13, 2021 at 12:18 p.m. UTC

Blocknox, a subsidiary of second-largest German stock exchange Boerse Stuttgart, is expanding its cryptocurrency custody service to institutional players.

According to an announcement from the bourse on Tuesday, Blocknox already provides custody for crypto assets on an "escrow basis" and has made the service available to users of Boerse Stuttgart's BISON app and its digital assets exchange, BSDEX.

The firm is now aiming to expand its services outside the group's own offerings, planning to safeguard cryptocurrencies and "other digital assets" for institutional clients such as banks and asset managers.

“As a pioneer in Germany, Blocknox has already been operating as a custodian of cryptocurrencies for more than one year," said Dr. Ulli Spankowski, managing director of Blocknox and chief digital officer for the boerse. "Now we want institutional clients to benefit from our experience and set-up as well. They can use Blocknox’s reliable custody as a building block for their own services around digital assets.”

The firm said it has already built and deployed a "multilevel security concept" to protect assets under custody.

With new rules for Germany-based cryptocurrency services introduced in early January, Blocknox said it has already informed regulators of its intent to apply for a license, which means it can offer custody services on a provisional basis. The firm plans to submit the final application before the set deadline to become a regulated financial services provider.

Spankowski said the new rules will bring "further professionalisation" to the crypto industry and will likely encourage more institutions to enter the market.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC