Germany's top stock exchange – Deutsche Börse – entered into a strategic partnership with two Swiss companies to create a trusted crypto ecosystem.
According to the press release unveiled by the companies on March 11, the partnership agreement was signed with Swiss state information and communication technology company Swisscom and Swiss-Singapore fintech company Sygnum.
The new project will be designed "to jointly build out and grow a trusted and regulatory compliant financial market infrastructure for digital assets," which in fact is believed to bring structural transformations to the financial markets.
"The core elements of the solution will include issuance, custody, access to liquidity, and banking services – all leveraging Distributed-Ledger-Technology (DLT) in a regulatory compliant environment," the report reads.
Under the partnership, all the parties of the agreement are said to run their own role in the project.
Specifically, Deutsche Börse will develop crypto storage solutions that will be offered to institutional investors. In addition, the company will get a stake and provide funding to Custodigit AG, a JV between Sygnum and Swisscom.
"Custodigit AG provides a technical solution for the custody of digital assets for regulated financial services institutions...As one of the main shareholders, Deutsche Börse will actively support the growth journey of Custodigit AG and its service offering."
Sygnum, in its turn, will offer a full pack of financial services, including deposits, crypto custody, credits, capital issuance via tokenization as well as asset management in the new ecosystem making use of the banking service license granted by FINMA.
The third party of the agreement, Swisscom, is said to provide its own scalable DLT-infrastructure which will comply with the security requirements set for the financial companies.
The first service of the announced ecosystem is expected to go live in 2019 upon the regulator's greenlight.