Bessie Liu

Germany&#8217;s finance watchdog says it hasn’t found any NFTs that can be classified as a security, but that doesn’t mean they won’t crop up.



BaFin says it studied different kinds of NFTs: digital collectibles, across gaming and the metaverse (including virtual real estate). It considers NFTs to be securities if they:



<ul>
<li>bare hallmarks of regular securities (membership rights or contractual claims, like stocks or debt),</li>



<li>are transferable,</li>



<li>and can be traded on the financial market.</li>
</ul>



“So far, BaFin is not aware of any NFTs that are to be classified as securities in the regulatory sense,” BaFin said (automatically translated.



“On the one hand, the tokens have so far lacked embodied rights similar to securities. And on the other hand, NFTs are usually provided with individual rights and content, so that standardization and thus tradability in the sense of the regulatory concept of securities is ruled out.”



The distinction ultimately boils down to the rights an NFT issuer associates with the digital asset and how it will be used after the token is purchased, the report said.&nbsp;



“With the currently observed use of NFT, in particular for the tokenization of digital works of art, the qualification as a financial instrument in the form of an investment or a debt security is not necessarily necessary,” BaFin said.



Rather than Bored Apes or CryptoPunks being securities, Bafin would more so consider this an example of an NFT security: 1,000 NFTs that all embody the same repayment and interest claims.



Bafin noted that mere speculation that a token can generate profit is not sufficient reasoning to classify an NFT as an investment.



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Germany: Digital Collectible NFTs Not Securities

Casey Wagner

German lender DekaBank has tapped Metaco to head up its digital asset operations as the financial player looks to expand into institutional crypto offerings.&nbsp;



DekaBank, which currently manages more than 360 billion euros ($390.9 billion) in assets, will use Swiss services provider Metaco for custody and capital market solutions, the bank announced Tuesday. The partnership is pending regulatory approval.&nbsp;



Metaco, founded in 2014, specializes in institutional cryptocurrency custody and trading, as well as decentralized finance (DeFi) services.&nbsp;



“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate,” Andreas Sack, product owner of digital assets custody at DekaBank, said in a <a href="https://www.metaco.com/press_releases/dekabank-technology-partnership-metaco/" target="_blank" rel="noreferrer noopener">statement</a>. 



“Today we make another important step towards laying the foundation for giving our institutional investors and millions of people in Germany access to this transformational opportunity.”



DekaBank, founded in 1918, is the securities provider of Sparkassen-Finanzgruppe, the largest financial services group in Europe.



Metaco has experience with the European regulatory system, DekaBank noted in Tuesday’s press release. Metaco “established itself as a leading technology provider to financial institutions and corporations in the digital asset ecosystem,” the release read.&nbsp;&nbsp;



The Metaco partnership is not Sparkassen-Finanzgruppe’s first foray into crypto. In December 2021, the banking group confirmed it was working on a pilot project to allow customers to access bitcoin and ether directly through their existing accounts.&nbsp;



DekaBank’s announcement comes shortly after Metaco revealed it would be partnering with Togg, a Turkish car company, on its mobility ecosystem built on the Avalanche blockchain.&nbsp;



In any case, DekaBank’s native Germany has been known as one of the more friendly countries when it comes to crypto regulation, Renate Prinz, partner at McDermott Will &amp; Emery LLP, wrote in a November 2022 <a href="https://www.finextra.com/the-long-read/534/understanding-the-regulatory-landscape-for-crypto-assets-in-germany-and-the-eu" target="_blank" rel="noreferrer noopener">blog</a>. 



The country has some of the clearest guidelines on licensing requirements and token classification, Prinz said, allowing for investors and businesses to more confidently enter the space.



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105-Year-Old German Bank Readies To Offer Crypto Services

Shalini Nagarajan

Cryptocurrency exchange Coinbase isn’t shying away from advertising despite cutting costs in other areas.&nbsp;



The exchange is strengthening ties with German soccer club Borussia Dortmund (BVB), local outlet Handelsblatt <a href="https://www.handelsblatt.com/finanzen/banken-versicherungen/banken/fussball-bundesligist-coinbase-macht-partnerschaft-mit-borussia-dortmund-oeffentlich/28932058.html" target="_blank" rel="noreferrer noopener">reported</a>. 



After establishing a partnership in July 2021, the club displayed ads for Coinbase on screens in its stadium and held crypto-related educational workshops for its employees.



That partnership is now leveling up as advertising will expand across marketing channels, including ads on the club’s stadium perimeter board, which will enhance virtual exposure for Coinbase at local events.



A Coinbase spokesperson previously told Blockworks the exchange intends to keep all its <a href="https://blockworks.co/news/crypto-sports-deals-slow">current sports sponsorship commitments</a>.



For now, the partnership has a time period and will reportedly last until June. The club’s managing director Carsten Cramer indicated that prudence is due to the crypto industry still being relatively new. “That&#8217;s why we want to keep our flexibility open,” he told Handelsblatt.



Borussia is the name of a local Dortmund brewery. The football club which dates back to 1909 is  <a href="https://www.boerse-frankfurt.de/equity/borussia-dortmund-gmbh-co-kgaa" target="_blank" rel="noreferrer noopener">listed</a> on the Frankfurt Stock Exchange, so it has a responsibility to shareholders to be cautious about its partnerships.



Coinbase was the <a href="https://www.coinbase.com/blog/coinbase-secures-first-crypto-licence-in-germany" target="_blank" rel="noreferrer noopener">first</a> company to gain a license for crypto custody from the German Federal Financial Supervisory Authority (BaFin) in June 2021, which was a significant reason for the club’s decision to partner with the company.



Now, some five companies hold the same permit.



Neither Coinbase nor BVB have mentioned how much BVB is getting for the sponsorship,&nbsp; though Cramer said they “didn’t receive the most tempting offer.”



The soccer world has become an attractive sector for crypto partnerships. Crypto[dot]com was a prominent brand in last year’s FIFA World Cup held in Qatar. And Coinbase already inked <a href="https://pr.nba.com/coinbase-nba-partnership/" target="_blank" rel="noreferrer noopener">sports partnerships</a> with the National Basketball Association, the Women’s National Basketball Association and other affiliates in 2021.



Still, the exchange was impacted by the crypto winter and cut more than 2,000 jobs in the last year. It also recently decided to pull out of a major crypto market, saying it would shut down <a href="https://blockworks.co/news/coinbase-follows-kraken-to-japan-exit">operations</a> in Japan.&nbsp;



Coinbase and BVB expect to decide whether to extend their partnership by April or May.



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Coinbase Seeks Brand Exposure with Germany’s Second-largest Soccer Club

<div id="highlights-block_634ebe37d0ce5" class="highlights">
 <ul>
 <li>Trading will remain possible until Nov. 30</li>
 <li>Customers have until Dec. 18 to withdraw funds</li>
 </ul>
 
</div>



German cryptocurrency exchange Nuri has closed its business after struggling to find investors.



The Berlin-based exchange with over 500,000 customers <a href="https://cms.blockworks.co/german-crypto-exchange-nuri-files-for-insolvency/" target="_blank" rel="noreferrer noopener">filed for insolvency</a> in August after “challenging market developments and subsequent effects of financial markets,” the company said in an earlier <a href="https://nuri.com/blog/nuri-filed-for-insolvency/" target="_blank" rel="noreferrer noopener">statement</a>. 



Customers have been asked to withdraw funds by Dec. 18 and trading will still be possible before Nov. 30, Kristina Walcker-Mayer, CEO of Nuri, said in a <a href="https://nuri.com/blog/letter-from-ceo/" target="_blank" rel="noreferrer noopener">blog post</a>.



“We recommend you withdraw all funds in your Nuri account as soon as possible,” the company said. “After the closure of the Nuri app, you will not lose your funds. But you’ll need to contact the respective partners and go through a manual process to withdraw them.”



Nuri has partnered with European mobile crypto and banking app Vivid Money GmbH to enable its customers to continue to trade cryptocurrencies. All Nuri users will be given an exclusive offer and transfer of funds and assets, <a href="https://support.nuri.com/hc/en-gb/articles/8150182580626-Now-that-Nuri-closes-soon-what-should-I-do-" target="_blank" rel="noreferrer noopener">according to the company</a>.



The cryptocurrency exchange was founded in 2015 under the name Bitwala. It has received a total of 42.3 million euros ($43.1 million) after eight funding rounds, but has struggled to find investors after its latest Series B in June, according to <a href="https://t3n.de/consent?redirecturl=%2Fnews%2Fkryptobank-nuri-muss-insolvenz-1490674%2F" target="_blank" rel="noreferrer noopener">reports</a> from German tech news website t3n. 



“The challenges have become insuperable due to the tough economical and political environment of the past months, which kept us from raising new funds or finding an acquirer,”&nbsp; Walcker-Mayer said. “On top, the insolvency of one of our main business partners worsened the situation significantly and put us over the edge.”



Nuri is not the only cryptocurrency exchange that has been affected by the crypto bear market — many exchanges including <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a>, <a href="https://cms.blockworks.co/gemini-exchange-cuts-workforce-for-second-time-in-2-months-report/" target="_blank" rel="noreferrer noopener">Gemini</a>, <a href="https://cms.blockworks.co/robinhood-lays-off-23-of-staff-a-day-before-earnings-report/" target="_blank" rel="noreferrer noopener">Robinhood</a>, <a href="https://cms.blockworks.co/crypto-com-parts-ways-with-nft-head-following-layoffs/" target="_blank" rel="noreferrer noopener">Crypto.com</a> and <a href="https://cms.blockworks.co/how-blockfi-went-from-tech-unicorn-to-crypto-burnout/" target="_blank" rel="noreferrer noopener">BlockFi</a> have all had to cut staffing after suffering significant losses.



Walcker-Mayer concluded her statement by thanking Nuri staff, customers and investors for&nbsp; their support.



“You went through very tough times with us since the beginning of the year and constantly rolled up your sleeves to face the next challenge together, constructively and positively. It was an honour to work with you. Every single day,” Walcker-Mayer said.



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German Crypto Exchange Nuri Shuts Down

<div id="highlights-block_62f2aeaf6ad19" class="highlights">
 <ul>
 <li>The exchange has struggled to find new investors since its latest Series B round in 2021</li>
 <li>The company says the bear market and political uncertainties have played a role in its insolvency</li>
 </ul>
 
</div>



Nuri, one of Germany’s largest crypto exchanges, is the latest company in the digital assets sector to file for insolvency amid turbulent market conditions.&nbsp;



Customers can still make withdrawals, the startup <a href="https://nuri.com/blog/nuri-filed-for-insolvency/" target="_blank" rel="noreferrer noopener">said in a statement</a>. The insolvency proceedings will not affect any deposits, cryptocurrency funds or Nuri Pot investments, according to the company.



“For the time being, nothing will change and Nuri’s app, product and services will continue to run,” the statement said.



Added the company: “Due to the current challenging market developments and subsequent effects on financial markets on Nuri’s business development, we have filed for insolvency on Tuesday 9. August 2022.”



The Berlin-based exchange has been struggling to find investors after its latest Series B in June 2021, t3n, a local German tech news website <a href="https://t3n.de/news/kryptobank-nuri-muss-insolvenz-1490674/" target="_blank" rel="noreferrer noopener">reported</a>. Since its initial launch in 2015 under the name Bitwala, the company has received a total of 42.3 million euros ($43.1 million) from investors in eight rounds of funding.&nbsp;



The exchange has over 500,000 customers — making it one of the larger players in Germany, albeit one of the world’s smaller such entities.&nbsp;



Nuri has pinned its downfall on the crypto sell-offs and the collapse of <a href="https://cms.blockworks.co/tag/celsius/" target="_blank" rel="noreferrer noopener">cryptocurrency lender Celsius</a>. Those factors — piled with the coronavirus pandemic, economic and political uncertainties due to the Russian invasion of Ukraine, plus cooling funding — have all played a role, the company said.



&#8220;We proceeded with the filling in due time to stay ahead of a lasting strain on the liquidity of our business. 2022 has been a challenging year for the startup ecosystem globally, especially for fintechs,” the exchange said.



The company said the insolvency filings are “temporary” and it is currently looking for a “viable long-term restructuring concept in the company&#8217;s current situation.”



Nuri is the latest cryptocurrency exchange to have been affected by the bear market. Recently, Singapore-based Zipmex, a Jump Crypto-backed exchange <a href="https://cms.blockworks.co/jump-capital-backed-crypto-exchange-suspends-withdrawals/" target="_blank" rel="noreferrer noopener">suspended withdrawals</a> as it struggled with liquidity.



But not all hope is lost — crypto companies with larger cash reserves have <a href="https://cms.blockworks.co/ftx-reportedly-in-talks-to-buy-south-korean-exchange-bithumb/" target="_blank" rel="noreferrer noopener">stepped in</a> to acquire struggling competitors. Last month, <a href="https://cms.blockworks.co/ftx-reaches-deal-to-acquire-blockfi-for-up-to-240m/" target="_blank" rel="noreferrer noopener">FTX reached a deal to acquire troubled lender BlockFi</a> for up to $240 million — and had also made deals to purchase Bitvo and Embed Financial earlier in June.



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German Crypto Exchange Nuri Files for Insolvency

David Canellis

<div id="highlights-block_627d021c364d3" class="highlights">
 <ul>
 <li>Germany’s Federal Ministry of Finance has finally outlined nationwide tax guidance on the crypto ecosystem</li>
 <li>Crypto investors will be pleased with the tax break but full-node stakers could be disappointed</li>
 </ul>
 
</div>



Crypto investors in Germany won’t pay tax on sales of digital assets such as bitcoin and ether — as long as they’re held for more than one year.



Germany’s Federal Ministry of Finance shared the ruling in a 24-page <a href="https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2022-05-09-einzelfragen-zur-ertragsteuerrechtlichen-behandlung-von-virtuellen-waehrungen-und-von-sonstigen-token.pdf?__blob=publicationFile&amp;v=1" target="_blank" rel="noreferrer noopener">document</a>, which formally defined blockchain concepts such as mining, staking, airdrops and masternodes within the context of the country’s tax system.



The decree marks the first time Germany has issued nationwide tax guidance on cryptocurrency. It was crafted in close consultation with the country’s 16 federal states, as well as top financial institutions.



Government ministers had held a hearing last summer to gauge sentiment among local crypto associations such as Bitkom and other market participants — including individual investors.&nbsp;



One of the most pressing questions related to whether lending or staking cryptocurrency extends the tax-free period on digital asset sales to 10 years, as is the case with buy-to-let properties.



“The deadline is not extended to 10 years if, for example, bitcoin was previously used for lending or the taxpayer provided ether as a stake for someone else to create their block,” State Secretary Katja Hessel said in a <a href="https://bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2022-05-09-einzelfragen-zur-ertragsteuerrechtlichen-behandlung-von-virtuellen-waehrungen-und-von-sonstigen-token.html" target="_blank" rel="noreferrer noopener">statement</a>.



EU policy expert Patrick Hansen, who advises Presight Capital on crypto ventures, told Blockworks that dropping the 10-year rule was “by far the most important demand of the German crypto community.”



“This is already a huge success and makes Germany a very attractive country crypto-tax-wise,” Hansen said.



Germany has a long history in cryptocurrency. Historically, the nation has been one of the largest contributors to both Bitcoin and Ethereum networks — 9% of Bitcoin nodes (1,443) and more than 14% of Ethereum nodes (847) are based in Germany.



In its 2022 State of Crypto Report, digital asset exchange Gemini reported that 17% of German respondents owned cryptocurrency — in line with the rest of Europe. More than half of the German respondents were “crypto curious” and planned to buy digital assets for the first time within the year — five percentage points higher than the French and 17 percentage points higher than the Danes.



Germany&#8217;s finance ministry did not advise specifically on non-fungible tokens (NFTs). Instead, blockchain-powered tokens were divided into categories: Utility, Security, Equity, Debt, and Payment, with some provisions for “hybrid” tokens that can be used in multiple ways and would ultimately be taxed on a transaction-by-transaction basis.



The ministry’s letter also gave some clarity with regard to airdrops, a popular method of distributing crypto tokens as a means of attracting users and liquidity. Earlier this year, Yuga Labs airdropped <a href="https://cms.blockworks.co/apecoin-in-for-a-volatile-ride-as-exchanges-list-bored-ape-yacht-club-linked-crypto/" target="_blank" rel="noreferrer noopener">ApeCoin</a> to Bored Ape NFT holders for use within the upcoming BAYC gaming ecosystem, for example.



Germany’s finance ministry outlined situations in which airdrop recipients would have to pay income tax — such as exchanging access to the airdrop for personal data or social media posts.



But if the recipient doesn&#8217;t have to take any action to receive the airdrop, there won’t be any income tax. Airdrops can still be taxed like other gifts, though, Hansen explained. “People normally have to pay taxes on airdrops, but there will be a lot of exemptions,” he said.



Hansen expressed that another “very important” provision outlined rules for paying staff in crypto. The ministry ruled that crypto tokens, which have no market value (because they are not listed on any exchange), won’t be attributed to the taxpayer. This means tokens paid to employees won’t be taxed until they become tradable.



All this is good news, according to Hansen. But the letter leaves something to be desired, he notes, namely the ministry still views staking digital assets via full nodes as a commercial activity, which has “big tax implications” for gains made by full-node operators compared to third-party staking providers.



“This sets the wrong incentives in my opinion,” Hansen said. In any case, he considers Germany “definitely ahead of most other countries in the world in terms of crypto regulation, taxes, [anti-money laundering] rules, particularly its travel rule implementation, and the crypto business licensing.”



This story was updated at 2:40pm ET on May 12 2022 with details on German ownership of cryptocurrencies. 



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Germany Affirms Crypto Sold After One Year Is Tax-free

Ben Strack

<div id="highlights-block_6272b2c2abd98" class="highlights">
 <ul>
 <li>Firm expects “a more thematic approach to digital assets” to continue as investors look beyond BTC, ETH</li>
 <li>Competitor 21Shares has launched similar products this year</li>
 </ul>
 
</div>



CoinShares has launched two more crypto ETPs in Germany, bringing the firm’s total ETP (exchange-traded product) launches this year to seven.&nbsp;



The Physical Chainlink and Physical Uniswap ETPs are listed on Germany&#8217;s main market Xetra, the company announced Wednesday. They each carry a management fee of 1.5%.



CoinShares Chief Revenue Officer Frank Spiteri said in a statement that investors have gained interest in digital assets beyond bitcoin and ethereum as the sector has evolved.



“A more thematic approach to digital assets is emerging amongst those most familiar with crypto, and we expect that trend to continue as research and investor education improves,” he said.



A CoinShares spokesperson didn’t immediately return a request for further comment.&nbsp;



Oracle protocol Chainlink is designed to bridge real-world information to the smart contracts running on a blockchain platform. Its native currency, LINK, has a market capitalization of roughly $5 billion, according to data compiled by Blockworks.



An alternative to centralized exchanges, Uniswap allows users to either trade or provide the liquidity that supports trading activities within its application. Uniswap (UNI) has a market cap of roughly $3.2 billion.&nbsp;&nbsp;



CoinShares manages roughly $3.3 billion in assets. After a <a href="https://cms.blockworks.co/coinshares-latest-to-benefit-from-booming-interest-in-european-crypto-products/" target="_blank" rel="noreferrer noopener">record fourth quarter</a> that saw the company notch its highest quarterly earnings and assets under management, its executives on Tuesday <a href="https://cms.blockworks.co/coinshares-q1-earnings-slide-retail-remains-focus-execs-say/" target="_blank" rel="noreferrer noopener">reported a slide</a> last quarter.



The launches follow the firm last week <a href="https://coinshares.com/news/coinshares-and-ftx-physical-ftx-token-etp" target="_blank" rel="noreferrer noopener">bringing to Xetra</a> a physically-backed FTX Token ETP in partnership with the crypto exchange. The product had seed capital of roughly $40 million.



Others have launched similar products in recent months. 



Competitor 21Shares <a href="https://cms.blockworks.co/21-shares-expands-crypto-etps/" target="_blank" rel="noreferrer noopener">launched ETPs</a> with LINK and UNI as underlying assets in February, as crypto ETPs <a href="https://cms.blockworks.co/coinshares-latest-to-benefit-from-booming-interest-in-european-crypto-products/" target="_blank" rel="noreferrer noopener">continue to proliferate</a> in Europe. 21Shares added products focused on FTX Token (FTT) and Decentraland (MANA) that same month.



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CoinShares Launches Chainlink, Uniswap ETPs in Germany

<div id="highlights-block_6262cc120e9ec" class="highlights">
 <ul>
 <li>Crypto custodial services were first brought under the purview of German financial regulators in January 2020</li>
 <li>European Union watchdogs are still in the process of drafting and implementing their own regulatory measures on digital assets</li>
 </ul>
 
</div>



Commerzbank, Germany’s fourth-largest bank, has confirmed it wants to offer digital assets custody and exchange services to clients, joining a growing number of conservative banks in Europe moving into digital assets.



Bernd Reh, a Commerzbank senior spokesman, confirmed to local media <a href="https://www.boersen-zeitung.de/banken-finanzen/commerzbank-beantragt-krypto-verwahrlizenz-303b9c3a-bbeb-11ec-8e62-5f7cf1d225cc" target="_blank" rel="noreferrer noopener">Börsen-Zeitung</a> last week that the bank applied for a license in January from BaFin, Germany’s Federal Financial Supervisory Authority, and that the bank would first focus on institutional customers. The banking giant currently has 70,000 corporate and institutional clients worldwide.



“Where traditional and large banks until very recently have seen crypto as competition and shied away from it, we now start to see adoption even from some of the most conservative players in the banking field,” Mikkel Morch, executive director at crypto hedge fund ARK36, said. Commerzbank, which had some 541 billion euros ($583 billion) under management in late 2021 according to its latest financial statement, has been working on several blockchain projects since 2018.



In January 2020, Germany introduced crypto custody into the German Banking Act as a new financial service. “Crypto custody business is also subject to the notice issued by [the German central bank] Deutsche Bundesbank on the granting of authorization to provide financial services,” BaFin says on its website dedicated to crypto licensing.&nbsp;



The regulator is also cracking down on unauthorized activity. Recently, the supervisory authority opened investigations into several crypto services companies that have not been granted authorization to operate in the country. If found guilty, individuals involved could face up to five years in prison.



Authorities and legislators in the European Union are still in the process of building regulatory regimes, but some, such as those in Germany and Portugal, already have registration procedures in place.



And traditional banks are increasingly applying for crypto licenses in Europe, including in Portugal, where <a href="https://www.securities.io/portugals-bison-bank-granted-the-license-to-offer-crypto-custody-services/" target="_blank" rel="noreferrer noopener">Bison Bank</a> last week became the first authorized bank to receive a crypto license from the country’s central bank.



Last July, Coinbase was awarded Germany’s <a href="https://blog.coinbase.com/coinbase-secures-first-crypto-licence-in-germany-8a5207fbc03b" target="_blank" rel="noreferrer noopener">first crypto license</a>. A <a href="https://cms.blockworks.co/report-germany-is-the-most-crypto-friendly-country/" target="_blank" rel="noreferrer noopener">report by Coincub</a> last week ranked Germany as the most crypto-friendly country.



Added Morch: “These moves can be interpreted as the beginnings of a race within the traditional banking field to gain a competitive edge by being the first entity in its local market to offer crypto services.”



As a result, crypto adoption will increase, he believes, and it will be a mainstream financial service – instead of the “next big thing.”



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German Banking Giant’s Move into Crypto Highlights Growing Trend in Europe

<div id="highlights-block_62584e4f7cb76" class="highlights">
 <ul>
 <li>Germany has become the home for an increasing number of crypto exchange-traded products in recent months</li>
 <li>The United States ranked third due in part to its mining hashrate dominance</li>
 </ul>
 
</div>



Germany has unseated Singapore as the most crypto-friendly country, according to a report by Coincub.



The company’s first quarter 2022 report ranked 46 countries based on a range of factors, including newly added categories such as the number of initial coin offerings (ICOs) in each country, fraud case prevalence and the availability of crypto courses by leading institutions.



“As events develop, we go beyond legislation or pure numbers and introduce new dimensions that are crucial for defining a country’s crypto friendliness or maturity,&#8221; Coincub CEO Sergiu Hamza said in a statement.



Germany ranked fourth on Coincub’s list last year.&nbsp;



The upgrade comes after crypto exchange KuCoin <a href="https://www.businesswire.com/news/home/20220324005035/en/KuCoin-Releases-Into-The-Cryptoverse-2022-Germany-Report-Highlights-44-of-Germans-Are-Motivated-to-Invest-in-Cryptocurrencies-to-Be-a-Part-of-%E2%80%9Cthe-Future-of-Finance%E2%80%9D" target="_blank" rel="noreferrer noopener">published a report last month</a> showing that 16% of the German population between ages 18 and 60 own crypto or have traded it in the past six months. Forty-one percent of those investors intend to increase their allocations to the space in the coming six months.



German magazine Capital first reported in December that the country’s savings banks, which hold more than 1 trillion euros, were looking to offer a wallet to trade cryptocurrency. The Coincub report called the decision a “groundbreaking” development that signals higher institutional acceptance of crypto.



German stock market operator Deutsche Boerse has also listed more than 20 crypto exchange-traded products (ETPs) on its digital exchange, Xetra, over the past few months. Fund issuers such as <a href="https://cms.blockworks.co/wisdomtree-unveils-3-new-crypto-etps-as-investors-seek-diversity/" target="_blank" rel="noreferrer noopener">WisdomTree</a>, <a href="https://cms.blockworks.co/coinshares-ftx-team-up-to-launch-solana-etp/" target="_blank" rel="noreferrer noopener">CoinShares</a> and 21Shares have all listed products in the country recently.



Singapore, which previously ranked number one, dropped to second due to government decisions to <a href="https://cms.blockworks.co/singapore-issues-guidelines-targetting-crypto-promotions-to-general-public/" target="_blank" rel="noreferrer noopener">restrict crypto services advertising</a> and <a href="https://cms.blockworks.co/singapore-bitcoin-atms-shutting-down-following-central-banks-guidelines/" target="_blank" rel="noreferrer noopener">a clampdown on bitcoin ATMs</a>, according to Coincub.



The United States ranked third among crypto-friendly countries due in part to its decision to seek clearer crypto regulation, the report noted.&nbsp;



President Joe Biden signed an executive order <a href="https://cms.blockworks.co/whos-in-charge-of-what-breaking-down-the-crypto-executive-order/" target="_blank" rel="noreferrer noopener">urging government agencies to work together</a> to study the “responsible development” of digital assets. US Treasury Secretary Janet Yellen echoed those calls <a href="https://cms.blockworks.co/yellen-warns-of-crypto-risk-in-first-digital-asset-speech/" target="_blank" rel="noreferrer noopener">in a discussion</a> that MicroStrategy CEO <a href="https://cms.blockworks.co/michael-saylor-bullish-on-promise-of-crypto-regulation/" target="_blank" rel="noreferrer noopener">Michael Saylor called</a> “probably the single-most important speech of the 21st century.”



The US also ranked first in mining as the country accounts for about 35% of global hashrate — ahead of second-place Kazakhstan, which totals about 18%.



The United Arab Emirates, which ranked 22, was a new addition to the list following its recent plans to become one of the world’s crypto hotspots.



Dubai last month <a href="https://cms.blockworks.co/dubai-is-the-latest-government-to-roll-out-crypto-law-set-up-regulator/" target="_blank" rel="noreferrer noopener">revealed its first cryptocurrency legislation</a> overseen by a new regulatory agency, and the emirate has recently granted licenses to crypto exchanges FTX and Binance to operate there.



China remained at the list’s bottom following its widespread ban on trading and mining crypto.



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Report: Germany Is the Most Crypto-friendly Country

<div id="highlights-block_6245bc6c12fa3" class="highlights">
 <ul>
 <li>Launches on exchanges across Europe come as the firm seeks to offer a more robust toolkit to institutional investors</li>
 <li>WisdomTree is exploring plenty more “very interesting projects,” an executive told Blockworks</li>
 </ul>
 
</div>



Asset manager WisdomTree has added three physically backed crypto ETPs as issuers rush to meet demand from investors looking to diversify their digital asset holdings.



The fund group, which manages roughly $80 billion in assets, this week launched solana, cardano and polkadot ETPs (exchange-traded products). The products began trading on exchanges in Germany and Switzerland on Tuesday and hit Euronext exchanges in Amsterdam and Paris on Thursday.



The trio of ETPs, which can be sold across the European Union, carry an expense ratio of 95 basis points.



Jason Guthrie, the firm’s head of digital assets for Europe, told Blockworks its client base on the continent is composed entirely of institutional investors.



“It’s not that you get a handful of clients or one big client saying, ‘I really want cardano or polkadot’ specifically, but rather there is this increasing appetite for an ever-expanding product set,” Guthrie said. “The ability for people to respond to market situations, to adjust their portfolio, to have a more robust toolkit I think is by far the loudest message that we get from our client base.”



The market capitalizations of solana (SOL) and cardano (ADA) are roughly $40 billion and $37 billion, respectively — good for sixth- and eighth-highest among cryptocurrencies, according to data compiled by Blockworks. Polkadot (DOT) ranks 11th, at about $25 billion.



WisdomTree now offers eight crypto ETPs. In addition to bitcoin and ethereum products, the company <a href="https://cms.blockworks.co/wisdomtree-launches-spot-etps-in-europe/" target="_blank" rel="noreferrer noopener">launched three crypto basket ETPs</a> in November. The Crypto Market (BLOC), Crypto Altcoins (WALT) and Crypto Mega Cap Equal Weight (MEGA) ETPs were designed to offer blended exposure to blue-chip coins, as well as decentralized finance payments, smart contracts and non-fungible tokens (NFTs).&nbsp;



“While Bitcoin and Ethereum grab the headlines, altcoins are now viable options for many institutional investors, providing more options to diversify their crypto holdings just like they would with any other asset class,” WisdomTree Head of Europe Alexis Marinof said in a statement.



In cherry-picking cryptocurrencies for products, Guthrie said the firm evaluates trading volumes and developer activity, as well as the support it has from exchanges and custodians.&nbsp;



WisdomTree is looking into “plenty of very interesting projects,” he added, noting that future exposures could come in the form of single-asset or basket products. Guthrie did not reveal any specific assets the firm is considering.



Exchange FTX and asset manager CoinShares <a href="https://cms.blockworks.co/coinshares-ftx-team-up-to-launch-solana-etp/" target="_blank" rel="noreferrer noopener">launched</a> the Physical Staked Solana ETP in Germany last week. DeFi Technologies subsidiary Valour launched terra (LUNA) and avalanche (AVAX) ETPs in the country a few days later.



Issuer 21Shares, which has launched a number of crypto ETPs in recent months, plans to have products supporting what the firm considers the top 50 cryptocurrencies by the end of the year, CEO Hany Rashwan <a href="https://cms.blockworks.co/21-shares-expands-crypto-etps/" target="_blank" rel="noreferrer noopener">told Blockworks</a>.



Guthrie acknowledged the increasing competition in the European crypto ETP space. While it’s important to bring new offerings to market, the executive added, it’s a “balancing act” to ensure the firm maintains a “manageable” product range.



“If you throw too much at the wall, it just becomes confusing to investors,” Guthrie said. “I also think there’s a risk with this space that if you go too far down the list, you can stray into products that are potentially not mature enough yet, are having regulatory issues or have less-established use cases.”



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WisdomTree Unveils 3 New Crypto ETPs as Investors Seek Diversity

Sebastian Sinclair

<div id="highlights-block_61f9f54c6d429" class="highlights">
 <ul>
 <li>A new exchange traded product that tracks the price of Solana&#8217;s native crypto has begun trading on the German exchange Boerse Frankfurt Zertifikate AG under the identification number A3GU9Y</li>
 <li>The ETP provides traditional investors exposure to the crypto within a regulated and &#8220;fully backed&#8221; environment</li>
 </ul>
 
</div>



A subsidiary of crypto firm DeFi Technologies has been given the green light by the Boerse Frankfurt Zertifikate AG to list an exchange-traded product (ETP) that tracks the price of Solana&#8217;s native crypto (SOL).



Valour&#8217;s Solana ETP began trading Tuesday under the German securities identification number A3GU9Y, according to a press release on Monday. The ETP directly tracks the price of SOL by calculating the arithmetic mean price from major crypto exchanges. 



A listing such as this gives traditional investors a means to edge their way into the crypto industry by alleviating certain risk concerns due to the exchange&#8217;s regulated structure.



Claiming to be &#8220;fully backed at all times,&#8221; Valour said it achieves this by purchasing or selling an equivalent amount of the underlying for every Valour ETP that is bought and sold on the Boerse or another exchange.



The product provides an investor exposure to SOL that can be bought directly from their bank or broker. ETPs are financial products that invest in or provide exposure to a variety of securities and are traded on an exchange.



A reference price for the Solana ETP is set by using the average price of the underlying SOL/USD from the four most liquid exchanges on the market. The dollar value of SOL/USD is then calculated into euros, according to a market <a href="https://assets.ctfassets.net/l61jgzfj46lz/4tHKl3nMBkF6mY1x6K9rSe/45a0259313bfbe0483f1915b3cd5158d/SOL-EUR-Factsheet-EN.pdf" target="_blank" rel="noreferrer noopener">fact sheet</a>.



The listing extends Valour&#8217;s recently launched <a href="https://cms.blockworks.co/metaverse-etp-gains-approval-in-europe/" target="_blank" rel="noreferrer noopener">Metaverse and Gaming Index ETP</a> that tracks the top five digital assets related to the virtual world. Indeed, Europe appears to be making significant headway ahead of other regions in crypto ETP listings, following <a href="https://cms.blockworks.co/coinshares-expands-reach-of-bitcoin-ether-etps/" target="_blank" rel="noreferrer noopener">multiple companies&#8217;</a> products on various exchanges around the continent.



&#8220;We look forward to continuing to provide investors access to industry-leading ETP&#8217;s on regulated exchanges throughout Europe,&#8221; said Defi Technologies CEO Russell Starr. &#8220;We also look forward to introducing several new products in the coming days and ultimately launching all our products on the Euronext exchange, the fourth largest exchange in the world.&#8221;


[stock_market_widget type=&#8221;inline&#8221; template=&#8221;generic&#8221; assets=&#8221;SOL-USD&#8221; markup=&#8221;{name} ({symbol}) is trading at {price} ({change_pct}).&#8221; display_currency_symbol=&#8221;true&#8221; api=&#8221;yf&#8221;]






[stock_market_widget type=&#8221;accordion&#8221; template=&#8221;chart&#8221; color=&#8221;#5679FF&#8221; assets=&#8221;SOL-USD&#8221; start_expanded=&#8221;true&#8221; display_currency_symbol=&#8221;true&#8221; api=&#8221;yf&#8221; chart_range=&#8221;1mo&#8221; chart_interval=&#8221;1d&#8221;]



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DeFi Technologies Subsidiary Gets Nod to List Solana ETP on Frankfurt Exchange

<div id="highlights-block_2017feda4c59227eba096521b2b4eded" class="highlights">
 <ul>
 <li>BitMEX executives are planning on buying a 268-year-old bank</li>
 <li>Pending regulatory approval, BXM Operations AG will purchase Bankhaus von der Heydt for an undisclosed amount </li>
 </ul>
 
</div>



BitMEX’s top brass is laying the groundwork for the company’s European expansion.



BXM Operations AG, the company founded by BitMEX CEO Alexander Höptner and CFO Stephan Lutz, announced plans on Tuesday to acquire German bank Bankhaus von der Heydt.&nbsp;



The acquisition of the 268-year-old bank is the first step toward creating a one-stop shop for regulated cryptocurrency products across Germany, Austria and Switzerland, the <a href="https://blog.bitmex.com/bxm-operations-intends-purchase-german-bank-bankhaus-von-der-heydt/" target="_blank" rel="noreferrer noopener">company said</a>. 



“Through combining the regulated digital assets expertise of Bankhaus von der Heydt with the crypto innovation and scale of BitMEX, I believe we can create a regulated crypto products powerhouse in the heart of Europe,” Höptner said in a statement.&nbsp;



Bankhaus von der Heydt is no stranger to digital assets. In October, the Munich bank revealed plans to <a href="https://cms.blockworks.co/bankhaus-von-der-heydt-will-custody-crypto-with-fireblocks/">expand into crypto</a> banking through a custody deal with Fireblocks, becoming one of the first banks to offer crypto services in the region. In addition to custody, Bankhaus von der Heydt currently offers blockchain payments services.



BitMEX is particularly looking to Germany to begin its European expansion, given the country’s business-friendly economy, Lutz said. BXM Operations AG is headquartered in Germany.&nbsp;



The announcement is in line with a <a href="https://cms.blockworks.co/how-booming-exchanges-are-prepping-for-a-bear-market/">growing trend</a> of cryptocurrency companies expanding into traditional banking services. Crypto exchanges including Coinbase and Kraken now offer lending and prime brokerage services, for example.&nbsp;



BXM Operations AG and Bankhaus von der Heydt’s current owner, Dietrich von Boetticher, have agreed on terms — pending approval from German regulator BaFun.&nbsp;



Bankhaus von der Heydt will continue its banking operations after the deal is finalized, according to BXM Operations AG. Höptner and Lutz will serve on the bank’s supervisory board.&nbsp;



The acquisition is expected to be finalized by the middle of the year. Terms of the deal were not disclosed.&nbsp;

BitMEX Execs Plan to Acquire One of Germany’s Oldest Banks

<div id="highlights-block_61a4d39fa54f2" class="highlights">
 <ul>
 <li>Three new products begin trading today: WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT) and WisdomTree Crypto Mega Cap Equal Weight (MEGA) ETPs</li>
 <li>Appetite for diversified basket products increases as institutional investors look beyond just bitcoin and Ethereum, according to WisdomTree’s head of digital assets in Europe</li>
 </ul>
 
</div>



WisdomTree has added three new physically backed cryptocurrency basket exchange-traded products to its lineup of offerings in Europe. 



The firm listed the WisdomTree Crypto Market (BLOC), WisdomTree Crypto Altcoins (WALT) and WisdomTree Crypto Mega Cap Equal Weight (MEGA) ETPs on Tuesday on SIX, the Swiss stock exchange, and Börse Xetra in Germany. They can be sold across the European Union.&nbsp;



The ETPs allow investors to gain diversified exposure to crypto markets as well as participate in the potential growth of decentralized finance, payments, smart contracts and NFTs, said Jason Guthrie, WisdomTree’s head of digital assets in Europe.



The asset class has grown to about $2.6 trillion since its introduction a little over a decade ago, he added, and institutions have shown increased interest in crypto over the past year.



“Going from engagement on the topic to building the approach internally to actually executing on behalf of clients is a journey for institutions, and they understandably move slowly through that,” Guthrie told Blockworks.&nbsp;



<h3>Looking beyond BTC and ETH</h3>



The institutional interest has gone beyond just bitcoin and ether, the executive added, noting that a diversified investment approach rather than concentrated bets within the space provides a “stepping stone” for certain asset managers.



“[There’s] the narrative around the growth smart contract platforms and the idea that it’s not going to be a winner-takes-all technology, that there is a multichain future that focuses on interoperability and the building of the use cases in DeFi, NFTs, the metaverse,” Guthrie explained. “All of that is starting to resonate, and the pace of which they’re picking that up is increasing, so we think there&#8217;s an appetite for these sorts of diversified basket products.”



BLOC offers exposure to a diversified basket of crypto assets, representing about 70% of the cryptocurrency market cap. Its underlying index includes bitcoin, ether, cardano, bitcoin cash, litecoin, polkadot and solana, and the offering rebalances on an annual basis. Each crypto asset has a maximum weighting of 45% and a minimum allocation of 2.5%.



WALT is designed for those who want more exposure to coins besides bitcoin and ether, and its index also comprises cardano, bitcoin cash, litecoin, polkadot and solana.



BLOC and WALT each carry a total expense ratio of 145 basis points.&nbsp;



The Crypto Mega Cap Equal Weight offering, priced at 95 basis points, is the cheapest physically-backed cryptocurrency basket ETP in Europe, the firm noted. It currently allocates to bitcoin and ether, with a quarterly rebalance.



Family offices and private bank networks will likely be the first to allocate to the new WisdomTree products, Guthrie said, and the firm expects more asset managers to do so within the next year.



Sumit Roy, crypto editor and analyst at ETF.com, told Blockworks that these WisdomTree ETPs are well-designed funds and a good way for investors to get diversified exposure to crypto.



“WisdomTree Crypto Altcoins strikes me as pretty unique,” he noted. “We&#8217;ve seen ‘ex-bitcoin’ funds that invest in the top crypto tokens excluding bitcoin, but this one excludes ether as well, which is interesting.”



<h3>Latest launches part of larger effort</h3>



WisdomTree launched a physically backed bitcoin ETP in 2019 and brought an Ethereum product to the European market earlier this year.&nbsp;&nbsp;



The firm has generated $4 million run rate revenue from crypto ETPs in Europe, executives said during the company’s earnings call a month ago.



WisdomTree CEO Jonathan Steinberg noted on the call that he believes a spot bitcoin ETF is a superior product to <a href="https://cms.blockworks.co/first-bitcoin-futures-etf-nears-1b-on-first-day-of-trading/" target="_blank" rel="noreferrer noopener">bitcoin futures ETFs</a>, which the US Securities and Exchange Commission has recently permitted. The firm is one of many to have proposed a bitcoin ETF designed to invest in the crypto asset directly, though it, along with similar offerings from a range of issuers, awaits approval.



The SEC earlier this month <a href="https://cms.blockworks.co/sec-rejects-vanecks-proposed-spot-bitcoin-etf/" target="_blank" rel="noreferrer noopener">rejected VanEck’s proposed spot bitcoin ETF</a>, leaving many wondering <a href="https://cms.blockworks.co/when-will-the-sec-approve-a-spot-bitcoin-etf/" target="_blank" rel="noreferrer noopener">when the agency could approve such a product</a>.&nbsp;&nbsp;



Steinberg told analysts on the October 29 call that he is “very confident” that physically backed bitcoin ETFs will ultimately launch in the US.



“I expect that it will play a big role in clients&#8217; portfolios for those that are looking for bitcoin exposure,” Steinberg said, “and WisdomTree will play a big role within the physical market.”



Roy said he doesn’t believe these latest WisdomTree launches will put any pressure on the SEC.



“For eight years, they&#8217;ve faced tremendous pressure from the industry to approve a spot crypto ETF, but they haven&#8217;t budged,” he said of US regulators.



<blockquote class="wp-block-quote">“I think the SEC has made it clear that it will act only when it is ready to do so. That could be months from now; it could be years. We really don&#8217;t know.”</blockquote>



The launches come after WisdomTree added bitcoin futures to its Enhanced Commodity Strategy Fund (GCC) and its Managed Futures Strategy Fund (WTMF), as well as expanded its digital assets team.&nbsp;



Will Peck, WisdomTree’s head of digital assets, <a href="https://cms.blockworks.co/wisdomtree-plans-to-launch-more-crypto-offerings-in-2022/" target="_blank" rel="noreferrer noopener">recently told Blockworks</a> that the firm intends to bring more crypto products to investors in 2022 while also focusing on how blockchain can change the financial world more broadly.&nbsp;&nbsp;



While Guthrie said there are no specific plans yet for additional crypto ETPs in Europe, he expects there to me more demand for single-asset, thematic and multi-asset offerings going forward.



“How can we include bitcoin inside a commodities basket? Is there a way to put a DeFi play next to an equities offering?” he said. “These types of multi-asset thematic approaches I think are going to be very interesting in the future, and so we are looking at all of that and will look to actively grow the range.”



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WisdomTree Launches Spot ETPs in Europe

<div id="highlights-block_6148a13b5a93e" class="highlights">
 <ul>
 <li>The &#8220;Solana summer&#8221; has turned into an institutional fall as VanEck, one of the largest ETF issuers prepares a Solana-backed ETN listing in Germany</li>
 <li>Solana has been one of the fastest growing protocols this year, but was struck with a series of technical challenges this week</li>
 </ul>
 
</div>



VanEck is now offering Tron, Solana and Polkadot ETNs in Germany as a way to allow investors to capture the momentum of layer-1 alternatives to Ethereum in recent months.



The ETF and mutual fund manager is looking to enter the crypto space from yet another angle. VanEck currently offers a <a href="https://www.vaneck.com/us/en/investments/bitcoin-tracker-fund/" target="_blank" rel="noreferrer noopener">Bitcoin Tracker Fund</a>, which gives accredited US investors and qualified offshore investors direct exposure to the cryptocurrency.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">VanEck has now listed three new ETNs on the digital assets <a href="https://twitter.com/hashtag/Solana?src=hash&amp;ref_src=twsrc%5Etfw">#Solana</a>, <a href="https://twitter.com/hashtag/TRON?src=hash&amp;ref_src=twsrc%5Etfw">#TRON</a> and <a href="https://twitter.com/hashtag/Polkadot?src=hash&amp;ref_src=twsrc%5Etfw">#Polkadot</a> on <a href="https://twitter.com/Xetra?ref_src=twsrc%5Etfw">@Xetra</a> Deutsche Börse. With this step, we expand our pioneering role for innovative and future-oriented investment solutions. Learn more in our press room: <a href="https://t.co/9YnmWw7WFh">https://t.co/9YnmWw7WFh</a> <a href="https://t.co/YaFNWtQ3f9">pic.twitter.com/YaFNWtQ3f9</a>&mdash; VanEck Europe (@vaneck_eu) <a href="https://twitter.com/vaneck_eu/status/1439931038009118725?ref_src=twsrc%5Etfw">September 20, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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In June, 21Shares, a lesser-known issuer, <a href="https://finance.yahoo.com/quote/ASOL.SW/" target="_blank" rel="noreferrer noopener">launched</a> a Solana Exchange Traded Product (ETP) on the SIX exchange in Switzerland.&nbsp;



VanEck currently has an application in front of the SEC <a href="https://cms.blockworks.co/sec-delays-approval-of-vaneck-bitcoin-etf-again/" target="_blank" rel="noreferrer noopener">to launch an ETF</a> in the US that would invest directly in bitcoin and has also filed for a <a href="https://cms.blockworks.co/vaneck-files-for-bitcoin-strategy-etf/" target="_blank" rel="noreferrer noopener">bitcoin strategy fund</a> that would invest in bitcoin futures contracts. It <a href="https://cms.blockworks.co/vaneck-and-proshares-apply-for-ethereum-futures-etfs/" target="_blank" rel="noreferrer noopener">revealed plans</a> last month to bring to market a futures-based ether ETF as well, but <a href="https://cms.blockworks.co/vaneck-proshares-seek-to-withdraw-requests-to-launch-ethereum-etfs/" target="_blank" rel="noreferrer noopener">quickly withdrew</a> the request to the SEC.&nbsp;&nbsp;



Matthew Sigel, VanEck’s head of digital assets research, <a href="https://cms.blockworks.co/competition-in-layer-1-space-continues-to-heat-up/" target="_blank" rel="noreferrer noopener">told Blockworks last month</a> that the proliferation of competing layer-1 smart contract platforms has come about amid a higher demand for transaction prices and throughput that are lower and faster than what the Ethereum network provides.&nbsp;



There are about half a dozen layer-1 smart contract protocols with the track record, size and community engagement to perhaps someday rival Ethereum, he noted at the time, pointing specifically to Solana.&nbsp;



“The idea that you could get 50,000 transactions per second, which would rival Nasdaq, opens up the potential to just securitize any number of existing assets, tokenize them and trade them in parallel using the Solana network,” Sigel explained.



Tushar Jain, a managing partner at Multicoin Capital, <a href="https://cms.blockworks.co/das-2021-are-layer-1s-better-than-layer-2s/" target="_blank" rel="noreferrer noopener">said during a panel</a> at Blockworks’ recent Digital Asset Summit in New York City that Solana was one of his firm’s “big bets” in the DeFi space.



Solana is currently trading for $158, down 2% through the weekend and 11% on-week, according to <a href="https://www.coingecko.com/en/coins/solana" target="_blank" rel="noreferrer noopener">CoinGecko</a>, as the protocol <a href="https://cms.blockworks.co/sol-stumbles-as-solana-struggles-with-technical-issues/" target="_blank" rel="noreferrer noopener">struggles to regain the market’s confidence</a> after technical issues put a halt to on-chain activity earlier this week.&nbsp;



This story was updated on September 20, 2021, at 1:26 pm ET.



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Are you a UK or EU reader that can’t get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a>&nbsp;in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.



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VanEck to Offer Tron, Solana, Polkadot ETNs in Germany

<div id="highlights-block_613b834320bd1" class="highlights">
 <ul>
 <li>Authorization allows SDX to go live with a regulated trading, settlement and custody infrastructure based on distributed ledger technology for digital securities</li>
 <li>The approval boosts trust in digital assets, which will help drive adoption by institutional investors, CoinShares’ head of product told Blockworks</li>
 </ul>
 
</div>



Switzerland’s regulator will allow the <a href="https://www.sdx.com" target="_blank" rel="noreferrer noopener">SIX Digital Exchange</a> (SDX) to operate a stock exchange and a central securities depository for digital assets in the country, the exchange announced on Friday. 



The authorization by the <a href="https://www.finma.ch/en/" target="_blank" rel="noreferrer noopener">Swiss Financial Market Supervisory Authority</a>, or FINMA, enables SDX to launch infrastructure based on distributed ledger technology for digital securities that integrates trading, settlement and custody services.



This is the first time that FINMA has issued a license for infrastructures that facilitate the trading of digital securities in the form of tokens and their integrated settlement, the agency noted on its website.



“The digitalization of financial markets continues apace, and while the final shape of the market is still evolving, this is an important milestone in providing institutional investors with a safe and robust infrastructure meeting all of the core requirements of a traditional exchange and CSD infrastructure,” Thomas Zeeb, SIX’s global head of exchanges, said in a statement.



The exchange first announced this project in July 2018, an SDX spokesperson told Blockworks. The prototype for trading and central depository has been available since September 2019, and is being tested by various banks working with the exchange.&nbsp;



The platform was productive in the fourth quarter of 2020, the representative added, and now the corresponding FMI licenses have been obtained from FINMA.



“The task of building a fully regulated digital exchange has never been done before,” the SDX spokesperson said. “It is important because with these licenses, SDX can now offer the highest Swiss standards of oversight and regulation.”



Townsend Lansing, head of product at European digital asset manager <a href="https://coinshares.com" target="_blank" rel="noreferrer noopener">CoinShares</a>, noted that the news comes several months after Germany’s Federal Financial Supervisory Authority, known as BaFin, <a href="https://www.securities.io/boerse-stuttgart-launches-digital-exchange/" target="_blank" rel="noreferrer noopener">approved</a> the Boerse Stuttgart Digital Exchange (BSDEX).



He added that CoinShares welcomes another major European regulator clearing the path for digital assets to be traded and settled in ways that are similar to more traditional financial assets. 



<div class="wp-block-image"><figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="400" height="400" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg" alt="Townsend Lansing, head of product at European digital asset manager CoinShares" class="wp-image-7776" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=400 400w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=257 257w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=261 261w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=219 219w, https://blockworks-co.imgix.net/wp-content/uploads/2021/09/1562058899085.jpeg?w=80 80w" sizes="(max-width: 400px) 100vw, 400px" /><figcaption>Townsend Lansing, head of product at European digital asset manager, CoinShares</figcaption></figure></div>



“This can only increase trust in the digital asset ecosystem, which in turn will help drive adoption and investment by institutional investors,” Lansing told Blockworks. “Europe in general, and Switzerland in particular, continue to lead the way for regulatory transparency and stability in digital currencies.”



SDX is focused on continuing to build out the digital financial ecosystem to create a global liquidity network for digital assets by engaging in cooperative ventures with partners and accelerating the onboarding of various global and local financial players. It expects its international customer base to expand to banks, issuers, insurance firms and other institutional investors.



“This is an important milestone in bringing the digitalization of capital markets into the mainstream, but it is only the beginning,” Zeeb said. “We will continue to work with our clients, regulators, and other stakeholders to shape the markets of the future.”



Are you a UK or EU reader that cant get enough investor-focused content on digital assets?<a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Join us</a> in London on November 15th and 16th for the Digital Asset Summit (DAS) London. Use code ARTICLE for £75 off your ticket. <a target="_blank" href="https://cms.blockworks.co/events/das-london/" rel="noreferrer noopener">Buy it now</a>.