Frankfurt Stock Exchange Wants to Launch Crypto Products
According to a report, Deutsche Boerse, owner of the FSE (Frankfurt Stock Exchange), is now considering launching crypto products.
Jeffrey Tessler, Frankfurt Stock Exchange’s head of clients, products & core markets, said the firm is ‘deep at work with it’, at an event in London yesterday.
However, it’s highly unlikely the firm would make any move into the crypto space anytime soon, explained Tessler stating –
“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.”
He said that the firm is not at the same stage as its U.S. rivals Cboe Global Markets and CME Group, both of which launched their bitcoin futures last year. No major stock exchange in Europe could do anything similar, mindful of authorities’ approach to regulate the crypto market.
The firm is now trying to understand volatility in the market, and wants to make sure both clients and regulators are ‘inline’ before moving forward with any bitcoin products, he added.
While the firm is not sure about offering bitcoin products, it has been active in the blockchain space for quite some time now.
In June last year, the Frankfurt Stock Exchange revealed details about its new plan to utilize blockchain technology for its post-trade services. The company has decided to shift the majority of its services post-trade, to a blockchain. It added at the time that it was concentrating on developing a system, using Hyperledger Fabric, to move its securities and transfer commercial bank money, while still ensuring compliance with regulators on cross-jurisdictional activities.
And earlier this year, the FSE announced that it would soon develop a platform to make securities lending more efficient, using R3’s Corda blockchain technology.