German stock exchange dives into crypto
Among German stock exchanges, Frankfurt is clearly the institutional heavyweight, but Boerse Stuttgart ranks as the leading exchange for retail investors. To date, trade volume fueled by activity in equities, securitised derivatives (which made up close to 50% of overall volume in 2018), bonds, investment fund units and profit participation certificates has made Boerse Stuttgart the tenth-ranked European exchange. Now, the team around CEO Alexander Hoeptner is pushing into cryptocurrency trading.
Announced in April 2018 with an original release date in the autumn, the Bison cryptocurrency trading app is currently in beta testing, with general release in the German market expected for the end of January 2019, followed by other European markets. It will be the first live crypto exchange backed by a traditional stock exchange, and thus will also fall under the supervision of German financial regulator BaFin.
At its core, cryptocurrency trading should be as simple and as fast as a securities or foreign exchange transaction that is conducted online. Users should be able to trade comfortably, with the complexity hidden behind a slick user interface. Like other crypto exchanges, Bison takes care of the custody of the assets, which helps the beginner get started, although it might concern more experienced traders following the “if you do not own your private keys, you do not own your crypto” mantra. Trading will be commission-free, Boerse Stuttgart will generate revenue through the spread of buy and sell quotes.
A key feature of the new app is the “Cryptoradar”, analyzing about 250,000 tweets per day to provide a sentiment overview of the most talked about cryptocurrencies. Initially, the exchange will offer trading in Bitcoin, Ether, Litecoin and Ripple, with more cryptocurrencies expected to be added during 2019.
The Bison app has been developed by Sowa Labs, a fintech company specialising in artificial intelligence and pioneering applications used to trade cryptocurrencies and securities. It focuses on real-time data analytics in financial markets and the development of trading applications. Sowa Labs has been a subsidiary of Boerse Stuttgart Digital Ventures GmbH since October 2017.
The third partner on board is solarisBank, which will provide the required crypto trading banking services to Boerse Stuttgart Group in addition to providing support as a technology partner through its Blockchain Factory in the development of a continuous infrastructure for digital assets.
Lastly, once the ICO platform of the Börse Stuttgart is completed, trading in the tokens issued there will also be possible in the secondary market.The crypto trading platform will be open to both private and institutional investors and offers order options comparable to securities trading. Open order books provide information about existing orders and the current market situation at any time.
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