German institutional investors with Deutsche Börse Venture Network can now put money into digital securities directly. These securities have the same regulation guarantee as the regular offerings of the German exchange. To make this possible Deutsche Börse announced a partnership with fintech company Cashlink on Wednesday.
Thanks to this collaboration it will be easier for startups to raise capital. German investors can pump money into the digital securities from blockchain and tech startups, all within the existing regulatory framework of the German law.
It’s the second time in a week that the Deutsche Börse from Frankfurt makes headlines. Last week the exchange completed a trial of tokenized securities settlement together with the German financial institute CommerzBank.
Germany okay with blockchain
This is not the first time that the exchange in Frankfurt makes a move into blockchain and cryptocurrencies. In Februari they launched their own crypto trading app, called Biso. The app offers trading in Bitcoin, Ethereum, Litecoin and XRP. Bison is meant for investors there are used to trading in more traditional markets.
Blockchain projects are also popping up left and right in Germany. Currently Ford is testing a service to increase the air quality in city centers using location and blockchain technology.
Germany not okay with Libra
Despite all the progressive innovation in finance and the automotive industry, Germany has been very verbal about Facebook’s libra. They don’t want libra and plan to ban the digital token. Instead Germany is considering a digital euro.
However, the stance is already completely different from one year ago. In September last year German Minister of Finance Olaf Scholz wasn’t that impressed by crypto. He saw no possibility for cryptocurrencies to replace fiat currencies at this moment. He’s still worried about a possible bubble, while he also referred to the energy intensity that comes with these coins.
How far we have come, because right now central banks all around the world are thinking about launching their own digital currency. China wants to push blockchain adoption, which is a statement that even came from the president. The International Monetary Fund is even warning central banks to embrace digital currencies, or they will be left behind.
Also published on Medium.