Crypto liquidity provider Hyphe gets BaFin securities trading license
The German subsidiary of Amsterdam-based digital asset liquidity provider, Hyphe, has announced that it received its BaFin license this week. Based in Munich, Hyphe Markets GmbH will now operate as an ‘Investment Firm’, as defined by the German Securities Institutions Act (WpIG) and European Investment Firm Regulation (IFR).
German financial regulator, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), has issued Hyphe Markets GmbH with a securities trading license, allowing the firm to offer its trading services to regulated financial institutions in the country. Germany is currently unique in Europe in classifying crypto assets as financial instruments under full regulatory supervision; as such, Hyphe Markets’ license represents the highest regulatory standard available ahead of the EU’s MiCA regulation, pencilled for late 2024. Germany’s inclusion of tokenised securities alongside crypto assets closely aligns with Hyphe’s business strategy: to provide institutional grade liquidity right across a burgeoning new ecosystem of digital and digitised assets. Crucially, both types of asset may be traded on the same infrastructure rails.
Last year Hyphe launched its own proprietary price discovery technology, Clear-Calculus, completing a product suite which includes trading and settlement via API and institutional grade systems integration. With the newly-issued BaFin license, Hyphe’s German subsidiary will be able to take the company’s trading solution directly to the German market.
Hyphe Co-Founder & CEO, Dolf Diederichsen said:
“I’m pleased we can now help German institutions launch and sustain the digital asset products and services that their customers want to see. Whether it’s straightforward retail brokerage, automated execution for asset managers, or servicing digital asset-backed ETPs. This is the just starting point for many of our clients. Looking ahead, tokenisation of securities will hugely impact both the machinery of investment and the access provided to investors, bringing greater efficiency, greater transparency for investors, and many more liquid markets. A new investment ecosystem is taking shape around us, and we see Hyphe as a key part of the infrastructure.”
Hyphe Markets’ BaFin license means the firm can now meet the demand from German banks, brokers and asset managers for highly-regulated digital asset liquidity.
Hyphe Markets GmbH Co-founder & COO, Jürgen Kudszus added:
“Germany is in many ways the most exciting market in Europe. Regulatory oversight from BaFin has given the banking industry confidence to develop in this direction; and it’s not just fintechs embracing the opportunities offered by digital assets, but traditional institutions too, with every expectation of the highest possible standards. Getting licensed is a big effort and a lengthy process, but crucial in meeting our goal of being the digital asset solution for German banks – now and in the future.”
About Hyphe
Hyphe is an Amsterdam headquartered digital asset liquidity provider for European financial institutions. Hyphe enables banks, brokers and asset managers to offer digital currency trading or digital-asset backed investment products to their customers. The company provides institutions access to a proprietary liquidity pool and trading platform featuring a range of digital currencies, including Bitcoin and Ethereum. Hyphe’s price discovery tech, Clear-Calculus, streams the fair market price for assets, 24/7.
Hyphe has been registered with the Dutch Central Bank (DNB) as a cryptocurrency service provider since 2020; Hyphe Markets GmbH is regulated by German financial regulator, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), as an Investment Firm.