- Archax acquired Deutsche Digital Assets, gaining $70M AUM and BaFin-regulated licenses.
- The deal expands Archax’s regulated crypto services into Germany and France’s crypto markets.
- This marks Archax’s third acquisition as it builds an EU-wide institutional crypto platform.
UK digital asset exchange Archax has acquired Deutsche Digital Assets (DDA), a German cryptocurrency asset manager. This transaction expands Archax’s regulatory coverage to major European markets and enhances its institutional growth strategy.
Archax Secures BaFin Licenses and $70M AUM Through DDA Deal
The acquisition of DDA gives Archax a direct connection to the financial regulatory scheme in Germany under BaFin. As of now, DDA has approximately $70 million in assets under management and deals with crypto exchange-traded products (ETPs). It has a distribution network across European banks and institutional asset managers.
Archax gains a suite of financial service permissions through DDA, including portfolio management, advisory, distribution, and contract brokerage. These capabilities are critical for servicing professional investors under the European Union’s evolving Markets in Crypto-Assets (MiCA) regulation. Archax CEO Graham Rodford described the acquisition as a key step in expanding regulatory depth. “Germany and France, two of the largest and most regulation-driven markets in Europe, are covered via DDA’s existing structure and relationships,” he said.
This deal marks Archax’s third acquisition in less than a year. In late 2024, it acquired Spanish broker KSCM, and earlier this year, it took over Globacap’s U.S. broker-dealer and alternative trading system business. After expanding regulatory coverage into the UK, Germany, France, and Spain, Archax is strategically placed in the most mature digital asset jurisdictions in Europe.
Crypto ETP Demand and Institutional Growth Fuel Acquisition Timing
This shift is prompted by rising institutional demand for regulated crypto instruments. In January this year, the listing of crypto ETPs on the UK Financial Conduct Authority (FCA) was approved for professional investors. In the meantime, Germany has had longer to establish itself in this framework, and this puts Archax at an advantage since it will have entered into an already established environment of familiarity with these products.
Through the acquisition of DDA, Archax is extending its portfolio beyond native crypto trading. The platform is now able to accommodate tokenization of real-world assets, crypto ETPs, and more advisory services. The acquisition would also enable Archax to meet cross-border compliance requirements under MiCA, which would require firms to engage in operational and legal compliance across EU member states.
DDA managing partner Maximilian Lautenschläger confirmed the announcement, saying the partnership fits the strategic goals of both companies. He referred to the transaction as a “natural fit” and cited increased market access on both sides of the channel. The extra licenses and institutional ties in the EU benefit Archax as it tries to dominate regulated crypto innovation.
Related: Gemini adds 14 tokenized stocks for EU users on Arbitrum
Archax Pushes for European Digital Asset Market Leadership
Archax’s growth strategy echoes the consolidation of digital assets. The company is using regulation as a competitive advantage in an environment where compliance is becoming essential. With increased crypto adoption by traditional financial players, more platforms are gaining traction, driven by regulatory clarity and institutional quality offerings.
The acquisition also highlights the increasing significance of crypto ETPs in Europe. These investment products enable the improvement of exposure to digital assets without direct exposure to tokens. Offering both compliant and liquid access points, Archax is accelerating institutional participation while mitigating risks often associated with unregulated platforms.
Amidst the challenges of integrating technology and retaining talent, Archax seems to be addressing those issues through careful planning. The firm’s focus on regulatory compliance and cross-border abilities hints at a long-term presence in Europe’s maturing crypto economy.
