Deutsche Börse’s subsidiary, Crypto Finance, is tackling a massive capital inefficiency plaguing institutional crypto. Its new AnchorNote solution seeks to eliminate the need to pre-fund exchange accounts, unlocking billions in frozen capital for Swiss traders.
Summary
- Deutsche Börse’s Crypto Finance launches AnchorNote in Zurich to address capital inefficiencies.
- The custody-native tool removes the need for pre-funded exchange accounts, unlocking capital for institutions.
According to a press release dated September 16, the Zurich-based firm has launched AnchorNote, a custody-native pledging solution developed in partnership with middleware provider BridgePort.
Crypto Finance said the system allows institutional clients to trade assets across multiple venues while the underlying collateral never leaves Crypto Finance’s regulated custody. The initial rollout is focused on the Swiss market, with European expansion planned next.
How AnchorNote rewires the trading workflow
AnchorNote functions by creating a dynamic link between Crypto Finance’s custody vault and the order books of multiple trading venues. BridgePort’s middleware acts as a neutral messaging hub, coordinating secure communications between the custodian and exchanges.
When a client wishes to trade, signals are routed through BridgePort to pre-allocate credit on an exchange, enabling execution. The actual assets, however, remain pledged as collateral within Crypto Finance’s secure, regulated custody throughout the entire process, only moving to settle the trade after execution.
Per the press release, this mechanism creates a seamless, end-to-end infrastructure that meets stringent institutional standards for security and operational risk.
“With Crypto Finance AnchorNote, we are closing a critical gap between custody and capital efficiency,” Philipp E. Dettwiler, Head of Custody and Settlement at Crypto Finance, said “Together with BridgePort, we are delivering an integrated solution that allows institutional clients to operate securely, flexibly, and in real time.”
The solution also supports rapid collateral reallocation, allowing traders to dynamically shift their pledged assets between connected venues via a user interface or a robust API, depending on their existing infrastructure.
Founded in Switzerland, Crypto Finance became part of Deutsche Börse Group following its acquisition in 2021. Since then, it has expanded its regulated footprint, securing approval from FINMA in Switzerland and BaFin in Germany, where it recently obtained a MiCAR license.