Boerse Stuttgart is Germany’s second-largest stock exchange and more often than not it doesn’t receive the coverage its counterpart in Frankfurt does. But as an underdog, it is able to experiment with new technologies such as blockchain and cryptocurrencies. And so we have Boerse Stuttgart announcing plans to develop a platform for Initial Coin Offerings (ICOs). Let’s see what this is all about, shall we?
Building an end-to-end infrastructure for digital assets
The ICO platform will be just one pillar of Boerse Stuttgart’s “end-to-end infrastructure” for “digital assets” which is currently in development. As such, the platform will allow token issuers to conduct token sales with “standardized and transparent processes,” while offering a “multilateral trading venue for cryptocurrencies as well as solutions for safe custody.”
Said custody service is expected to be rolled out within the next few weeks, followed by the release of the Bison app and the ICO platform (more on the Bison app in a moment).
Furthermore, Boerse Stuttgart also has its sights set on secondary markets and will be designing its services accordingly.
“At the trading venue tokens issued via our ICO platform can be traded on the secondary market,” the company’s CEO Alexander Hoptner said in a statement. “This is an important success factor for ICOs. At the same time, we are responding to demand from both retail and institutional investors for a regulated and reliable environment for trading and cryptocurrencies.”
In that sense, he went on to add that Boerse Stuttgart will “closely cooperate” with financial regulators to eventually facilitate the “digital transformation of financial markets and financial products.”
“We can offer central services along the value chain for digital assets, all under one roof,” Hoptner said. “We will help to promote the acceptance of digital assets.”
A crypto trading app coming before the ICO platform
As we have previously reported, Boerse Stuttgart will launch a cryptocurrency trading app in September. Currently in development by the firm’s subsidiary Sowa Labs, the Bison app will be released in September with support for the most popular cryptocurrencies — including Bitcoin (BTC), Ethereum (ETC), Litecoin (LTC), and Ripple (XRP) — with even more digital assets coming down the road. Also initially, the app/service won’t charge trading fees making for a that much sweeter deal.
On the downside though, at least for some of us, it will first be available in German, and only later in English.
“Bison makes trading in digital currencies easy,” Managing Director at Sowa Labs Dr. Ulli Spankowski said in a statement. “It is the first crypto app in the world to have a traditional stock exchange behind it.”
Boerse Stuttgart acquired Sowa Labs last December when Hoptner said the move will help fulfill part of the exchange’s digital strategy. No numbers were shared at the moment of acquisition though he mentioned it was a seven-figure deal.