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Kraken–360T Integration Could Be A Game Changer For Deutsche Börse (XTRA:DB1)

Simply Wall St · 1d ago
  • Earlier this month, Kraken and Deutsche Börse Group announced a partnership to connect traditional financial markets with digital assets across trading, custody, settlement, collateral management, and tokenized products, initially via a direct integration between Kraken and FX venue 360T.
  • The collaboration could position Deutsche Börse as a core infrastructure provider for institutional crypto and tokenized asset access in Europe and the U.S., reinforcing its role in the development of digital capital markets.
  • Next, we’ll examine how integrating Kraken with 360T and broader tokenization plans could influence Deutsche Börse’s long-term investment narrative.

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Deutsche Börse Investment Narrative Recap

The core case for owning Deutsche Börse is that it can keep compounding earnings through its exchange, clearing and data businesses while managing costs and regulatory change. The Kraken partnership adds a potential new growth leg in digital assets, but does not immediately alter the main near term swing factors, which still look tied to European trading volumes and execution on existing regulatory driven derivatives growth, alongside the risk that higher costs or weaker flows pressure margins.

Among recent developments, the confirmed exclusive talks to acquire Allfunds for a mix of cash and Deutsche Börse shares at €8.80 per Allfunds share, plus prospective dividends, are highly relevant here. Folding a large funds platform into the group would further diversify fee income and deepen its role in distribution, but it would also increase execution and integration risk at a time when management is already investing heavily in technology and digital market infrastructure.

Yet while digital expansion is exciting, investors should also be alert to the possibility that weaker European asset flows could...

Read the full narrative on Deutsche Börse (it's free!)

Deutsche Börse's narrative projects €6.9 billion revenue and €2.4 billion earnings by 2028. This implies revenue declining by 1.6% per year and an earnings increase of about €0.4 billion from €2.0 billion today.

Uncover how Deutsche Börse's forecasts yield a €260.54 fair value, a 20% upside to its current price.

Exploring Other Perspectives

XTRA:DB1 1-Year Stock Price Chart
XTRA:DB1 1-Year Stock Price Chart

Three Simply Wall St Community fair value estimates for Deutsche Börse span roughly €237 to €283, showing a wide spread of opinions among private investors. You can weigh these views against the risk that any reversal in European asset inflows could reduce trading volumes and test the earnings power that many expect the business to sustain.

Explore 3 other fair value estimates on Deutsche Börse - why the stock might be worth as much as 31% more than the current price!

Build Your Own Deutsche Börse Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Deutsche Börse research is our analysis highlighting 5 key rewards that could impact your investment decision.
  • Our free Deutsche Börse research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Deutsche Börse's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.