Boerse Stuttgart, the second largest stock exchange in Germany, is creating platforms for ICOs, cryptocurrency trading, and custodial services.
What a difference a year or two makes. It was not that long ago when all of the major financial bigwigs on Wall Street were denigrating Bitcoin and virtual currencies. They labeled cryptocurrencies a scam and definitely beneath their notice. However, they have changed their tune. Case in point is that the second largest stock exchange in Germany, Boerse Stuttgart, is creating a full-bore cryptocurrency platform.
Creating a Strong Infrastructure
Boerse Stuttgart is offering up cryptocurrency trading via their BISON platform. However, the German stock exchange is going much further, adding additional support for the launching of ICOs as well as cryptocurrency custodial services.
In a press release, the stock exchange says:
Boerse Stuttgart Group is creating an end-to-end infrastructure for digital assets. After the start of cryptocurrency trading via BISON, there will soon be a platform for initial coin offerings (ICOs), a multilateral trading venue for cryptocurrencies as well as solutions for safe custody. Boerse Stuttgart Group thus continues to pursue its digitisation strategy and is becoming a pioneer for the digital transformation of financial markets and financial products.
The CEO at Boerse Stuttgart GmbH, Alexander Höptner, notes that the stock exchange can be successful in this endeavor as they have a lot of knowledge in the areas of trading models, technology, and regulation. He adds:
On this basis we can offer central services along the value chain for digital assets, all under one roof. Investors and market participants know that Boerse Stuttgart Group stands for quality, transparency and reliability. As a Germany-based provider we want to transpose this standard into the digital world. We will help to promote acceptance of digital assets,
Bitcoin and Ethereum Trading
The new cryptocurrency infrastructure will allow for the trading of both Bitcoin and Ethereum. It appears that other popular coins will also be listed on the platform. It is interesting that the stock exchange will be working closely with regulatory bodies in Germany. This is a good thing overall as it ensures greater mainstream adoption by not running afoul of governmental authorities.
As for the cryptocurrency trading aspect of the new platform, Alexander Höptner says:
At the trading venue tokens issued via our ICO platform can be traded on the secondary market. This is an important success factor for ICOs. At the same time we are responding to demand from both retail and institutional investors for a regulated and reliable environment for trading with cryptocurrencies.
The fact that the second largest stock exchange in Germany is jumping into the cryptocurrency ecosystem is a good thing. Of course, the main reason why they’re doing so is that they see that they can make money through this action.
The total market cap for cryptocurrencies is only $241.4 billion, which is a fraction of other financial sectors. However, the market cap reached almost 4 times higher during the massive Bitcoin bull run in late 2017, and the increasing acceptance and adoption of cryptocurrency are presenting institutional investors with a prime opportunity. Whenever the old financial guard smells the possibility of making more money, a sector that was once labeled a joke suddenly becomes the next technological marvel.
What do you think about Boerse Stuttgart going all-in on cryptocurrency? Let us know in the comments below.
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