Deutsche Börse's Crypto Finance Launches In-Custody Settlement
Deutsche Börse’s Crypto Finance Unveils In-Custody Settlement for Institutions
Crypto Finance, a subsidiary of Deutsche Börse Group, has launched AnchorNote, a system designed to allow institutional clients to trade digital assets without moving them from regulated custody.
This new system integrates BridgePort, a network connecting crypto exchanges and custodians, and facilitates off-exchange settlement while maintaining connectivity to various trading venues.
Key Features of AnchorNote:
- Increased Capital Efficiency: By keeping assets in custody while enabling real-time collateral movement, AnchorNote aims to optimize how institutions use their capital.
- Reduced Counterparty Risk: The system minimizes risks associated with trading partners through its secure in-custody model.
- Dedicated Trading Lines: Clients can establish specific trading lines, with BridgePort managing communication between venues and Crypto Finance acting as the collateral custodian.
- Flexible Integration: Institutions can manage collateral via a dashboard or integrate AnchorNote directly into their existing infrastructure using APIs.
“Institutional clients face a constant tradeoff between security and capital efficiency,” stated Philipp E. Dettwiler, head of custody and settlement at Crypto Finance. “AnchorNote is designed to bridge that gap.”
This setup eliminates the need for pre-funding exchanges and grants immediate access to liquidity across different platforms. For example, a Swiss bank can pledge bitcoin held in custody and deploy it instantly across multiple trading venues without on-chain movements.
Rollout Strategy
The initial rollout of AnchorNote is in Switzerland, with plans for expansion across Europe.