In August, Swiss fintech firm Leonteq began offering crypto-asset products in Germany and Austria. The company hopes to meet the demand of institutional and private investors.
Leonteq boasts the biggest securitized crypto product trading market in the DACH region. The countries of Switzerland, Germany, and Austria make up the DACH region. This large market is open to both institutional and retail investors.
This expansion is due to the help of ICF Bank AG. ICF Bank is a major securities trading bank in Germany. It allows Leonteq to structure and sell its crypto-asset products.
So what is Leonteq and why should investors care about it? Founded in 2007, Leonteq's base is in Zurich. It serves more than 50 markets. It now has subsidiaries in 12 different countries after the new growth. The company is a member of the Swiss Structured Products Association.
Leonteq is a leader in the market of structured products on crypto assets. Leonteq first began in its home market in Switzerland. The company’s shares went public in 2012. It was launched under the name of EFG Financial Products Holding AG. It changed its name to Leonteq AG in 2013.
Since 2017, it has managed certificates on cryptos and issued tracker certificates. Later in 2017, Leonteq began offering a short tracker certificate. This was the first short tracker certificate on Bitcoin (BTC) in the world at the time.
In 2019, they offered the world’s first reverse convertible on BTC. Now, reverse convertibles are one of the more popular risk-optimization products in Switzerland. As a result, the company won a Swiss Derivative Award twice in a row.
Leonteq both issues its own products and partners with other firms. Its specialty is in structured financial and fintech insurance products. In these areas, the Swiss firm offers options.
Most of Leonteq’s structured products consist of:
Both of these are key for many investors. Leonteq’s insurance products help providers build retirement plans that offer guarantees. It combines finance and tech to do so.
Structured investment products, or SIPs, mix two or more assets. They most often involve fixed income markets and derivatives. Derivatives are a contract that depends on an underlying asset. Investment banks or organizations will often create SIPs.
These SIPs are not the same as a systematic investment plan (SIP). This is a plan in which people pay into a mutual fund or retirement account.
In the press release, Leonteq listed the assets that are now available to Germans and Austrians. Leonteq offers 18 crypto assets for securitized trade. This is a wide variety that includes all the main names in crypto.
Here are Leonteq's top cryptos:
Investors can also buy tracker certificates on Leonteq’s crypto assets. These are available on the Börse Frankfurt Zertifikate AG, also known as the Open Market.
Member of the Bank’s Management Board Sasch Rinno spoke about what the bank offers Leonteq. He spoke of the bank’s expertise in crypto-assets and structured certificates. He stated that the ICF Bank was “pleased” with the new venture.
“Through this cooperation with Leonteq, we are meeting the interest of both institutional investors as well as private investors in crypto assets,” said Rinno. “Leonteq is an established issuer that stands for excellence and quality in the field of structured certificates and crypto assets."
Founded in 1997, ICF Bank employs more than 75 people. ICF Bank is in Frankfurt, Germany. ICF bank offers its institutional clients many services. These services help with capital markets and securities trading. It also offers the following focuses for both domestic and international clients:
Leonteq is also excited about the growth. Head of Crypto Offering at Leonteq, Tino Wendisch, gave new numbers about the firm. He stated that the firm covers about 76% of the market cap of the emerging asset class in the two countries’ markets.
“We are proud to offer our clients such a broad underlying universe. And unique investment opportunities in various themes within the crypto space. Such as decentralized finance, storage, or blockchain technologies in a securitized format.”
Björn Geidel, who heads sales in Austria and Germany, added some context to this action. He shared that this is not the first time Leonteq and the Bank have worked together.
“Leonteq and ICF have been working together for many years. Especially in the area of market-making of structured products. And we are looking forward to expanding our crypto footprint. With one of Germany’s leading securities trading banks.”