Hyphe Obtains BaFin License to Serve Financial Institutions in Germany

Hyphe, an Amsterdam-based digital asset liquidity provider, announced that its German subsidiary, Hyphe Markets GmbH, has received a BaFin license, enabling it to provide trading services as an 'Investment Firm' to regulated financial institutions in Germany.

Germany is currently unique in Europe in classifying crypto assets as financial instruments under full regulatory supervision. Hyphe Markets' BaFin license signifies adherence to the highest regulatory standards available ahead of the forthcoming EU MiCA (Markets in Crypto-Assets) regulation scheduled for late 2024.

In its latest announcement, Hyphe stated, "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."

"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," said Dolf Diederichsen, Co-Founder & CEO at Hyphe. "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."

"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," added Jürgen Kudszus, GmbH Co-founder & COO at Hyphe Markets. "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."