Börse Stuttgart Group will launch a crypto trading platform in the first half of 2019. In an official announcement on Wednesday, the stock exchange said it is creating an end-to-end infrastructure for digital assets.
Initially, only Bitcoin and Ethereum will be available for trading. However, as the company is developing its own ICO platform, tokens issued there will be available for trading in secondary markets as soon as the platform goes live.
Börse Stuttgart says it attempts to attract both, institutional and retail investors. The firm is currently seeking approval for its new platform to be self-regulated as a Multilateral Trading Facility (MTF). An MTF is a trading system that uses electronic systems to match buyers and sellers of financial products.
Thus, the trading venue will facilitate order opportunities in a way similar to traditional securities trading platforms. Open order books will provide real-time information regarding existing orders and the current market situation and all orders will be executed according to fixed and transparent rules.
Börse Stuttgart teamed up with solarisBank
Börse Stuttgart is Germany’s leading floor-based exchange for retail investors. It is also the second largest stock exchange in the Germany and the ninth-largest in Europe.
The company develops its new trading platform together with solarisBank, a Berlin-based FinTech company which also operates with a banking license in Germany.
“With its combination of technology and banking expertise, solarisBank is a great partner for us to offer central services along the value chain for digital assets. solarisBank’s Blockchain Factory supports us in taking trading in crypto currencies and tokens to the next level and in setting new standards in transparency and reliability” says Alexander Höptner, CEO of Börse Stuttgart.
SolarisBank is assisting with the build out of the trading platform. Additionally, it will provide the required crypto trading banking services for Börse Stuttgart.
“Börse Stuttgart Group and solarisBank share the ambition to shape the future of the financial industry,” says Roland Folz, CEO of solarisBank. “A reliable and performant trading venue is a fundamental contribution to our shared vision of a hybrid financial world with both fiat and crypto currencies.”
Positive signal for crypto trading in Europe
Börse Stuttgart’s move is a promising sign for Europe’s crypto industry.
Over the last years, Europe has failed to develop a crypto trading environment that is competitive with other markets. As a result, crypto trading in Europe has been lacking behind.
Up to 2018, major cryptocurrencies such as Bitcoin and Ethereum have had most of their daily volumes concentrated in Japan, South Korea, and the United States. This trend has slowly started to change throughout this year, for several reasons.Firstly, some of the larger European countries such as the U.K. and France have sent crypto-friendly signals during the last G20 summit, which has caught the eye of the crypto community.
Secondly, European stock exchanges have started to develop their own crypto trading infrastructure. Switzerland’s stock exchange SIX, for example, is going to launch its SIX Digital Exchange (SDX) in early 2019, which will be based on distributed ledger technology. SDX will offer trading of tokenized digital assets like cryptocurrencies and others, integrated post-transaction services such as deal settlement, and asset custody.
Liechtenstein’s crypto exchange LCX just recently announced that it was granted a business license of the Liechtenstein Ministry of Economic Affairs to conduct business in Liechtenstein. This license also includes the permission to provide exchange trading services for utility and payment tokens.
Thus, Börse Stuttgart is joining other players who have already started to develop the European marketplace for digital assets. Once the infrastructure is in place, European exchanges will quickly start to record volumes that are completive with established markets.
More regulated options for investors and more liquidity in crypto markets will add more overall stability to the asset class. Börse Stuttgart’s crypto venue comes at the right time.