Deutsche Börse Partners with Kraken to Unify Traditional and Digital Markets

Deutsche Börse Group, a prominent global exchange organization, has formed a strategic alliance with the US-based cryptocurrency exchange, Kraken. Their goal is to bridge the gap between traditional financial markets and the emerging digital asset markets.

Key Takeaways

Deutsche Börse and Kraken have announced a partnership to connect traditional and digital finance.
The focus is on improving institutional access to regulated crypto products like spot trading and derivatives.
The collaboration includes integrating Kraken's services with Deutsche Börse's digital infrastructure, 360X.
Plans to expand access to Europe’s futures and options markets are underway, subject to regulatory approval.

Deutsche Börse joins Kraken in ambitious push to unify digital markets

Strategic Alliance for Enhanced Access

The partnership between Deutsche Börse and Kraken aims to simplify access for institutions to both regulated crypto products and traditional markets. The companies are targeting improvements in liquidity and trading capabilities across various jurisdictions.

Stephan Leithner, CEO of Deutsche Börse Group, commented, “This partnership will enhance our service to institutional clients in the digital asset era and help build the future of digital capital markets.”

Integrating Services: xStocks, 360T, and Eurex

As part of the collaboration, there will be several integrations, notably including the incorporation of Kraken-supported xStocks into Deutsche Börse's digital asset framework, 360X.

In the initial phase, Kraken will directly integrate with 360T to increase its clients' access to bank-grade foreign exchange liquidity. This move aims to significantly enhance the infrastructure for converting fiat to cryptocurrency while ensuring effective execution for institutional clients.

Image showing integration plans

Pending regulatory approvals, the partnership will also work to broaden Kraken's access to Europe’s regulated futures and options markets by integrating derivatives listed on the German derivatives exchange, Eurex.

Additionally, Deutsche Börse and Kraken will focus on incorporating xStocks, which are tokenized stocks from Backed Finance, anticipated to be acquired by Kraken by the end of 2025. The plan also includes distributing Clearstream-held securities in tokenized formats to Kraken’s customer base.

A Vision for the Future

“Our partnership with Deutsche Börse Group showcases what can be achieved when two trusted infrastructures come together,” said Arjun Sethi, co-CEO of Kraken. He emphasized the alliance's potential in integrating the robustness of regulated environments with the innovative capabilities of digital finance.

Leithner reiterated the commitment of Deutsche Börse to influence the evolution of financial markets, noting that this partnership embodies the principles of trust in their regulated infrastructure alongside the dynamic innovations within the digital asset sector.

Kraken has been steadily enhancing its footprint in Europe, recently launching xStocks support in collaboration with Backed in September. The US exchange has successfully acquired important local licenses, including those regulated under the Markets in Financial Instruments Directive (MiFID) and the Markets in Crypto-Assets (MiCA) framework.

Conclusion

The strategic partnership between Deutsche Börse and Kraken highlights the ongoing transition towards a more integrated financial landscape that embraces both traditional and digital assets. With a focus on regulatory compliance and technological innovation, both firms are setting the stage for a more cohesive market experience for institutional investors.

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