Today Crypto Finance said it was partnering with global fund administrator Apex Group to offer institutional grade structured crypto products. Swiss-based Crypto Finance is FINMA regulated and a subsidiary of the Deutsche Börse Group. Apart from asset management, it offers crypto brokerage, custody, staking and tokenization services.
In Q2, the two firms will cooperate to offer exchange traded products (ETPs) and actively managed certificates (AMCs) backed by digital assets. The intention is to target banks, asset managers and family offices.
Apex Group plans to operate a Swiss independent securitization SPV, providing its usual administration, trustee and reporting services leveraging Crypto Finance’s infrastructure to issue structured products.
“Today’s announcement is an important next step in our global strategy of institutionalising digital markets, enabling institutional capital to access this digital asset class within the same secure and regulated framework they are familiar with from the traditional financial markets,” said Bruce Jackson, Chief of Digital Asset Funds and Business at Apex Group.
In mid-2021, Deutsche Börse paid more than CHF 100 million ($108m) to acquire a two thirds stake in Crypto Finance.
“The partnership with Apex Group combines the expertise in our respective fields to offer professional investors trusted partners to help them set up their crypto-related investment products,” said Jan Brzezek, Founder and CEO of Crypto Finance Group.
Apex previously had a relationship with Blockchain.com Asset Management which also targeted institutional investment products. However, with the crypto winter, Blockchain.com decided to wind down the division, as first reported by Bloomberg.
Across all asset classes, the fund administration firm said it serviced $3 trillion in assets in Q3 last year. But since then, the Apex Group acquisition spree has continued, including a deal in January to buy Pacific Fund Systems, which administers another trillion in assets. Backers of Apex include Carlyle and Mubadala, with private equity firm Genstar owning the majority.
Apex bought a majority stake in FundAdminChain a year ago and led the funding round of Inveniam, which provides valuation data for private assets that might underpin digital assets. Apex is also involved in a tokenized art fund.