Deutsche Börse Group is set to acquire the remaining shares in FundsDLT, a financial institution based in Luxembourg.
The global market infrastructure provider is expected to complete the purchase in the fourth quarter of 2023, or the first quarter of 2024, subject to regulatory approval.
The move continues the organisation’s longstanding relationship with the Luxembourg-based company, which has been prevalent since 2020 when via its post-trade infrastructure provider Clearstream, Deutsche Börse Group joined forces with the Luxembourg Stock Exchange, Credit Suisse Asset Management and Natixis Investment Managers to invest in and further develop FundsDLT as the first platform to carry out fund subscription on blockchain infrastructure.
Philippe Seyll, CEO of Clearstream Fund Centre S.A, said: “The acquisition of FundsDLT is a critical and natural step in our digital strategy. It demonstrates our position at the forefront of innovation and will redefine the overall distribution chain of the fund business.
“It enriches distribution capabilities, is streamlining operations and bringing asset managers closer to retail clients through blockchain. We will see measurable benefits for market participants, including faster time to market and cheaper access to funds.”
FundsDLT has successfully demonstrated the advantages of a blockchain-based distribution model for investment funds in several locations across Europe and Asia and is established as a leading solution for digital cross-border distribution.
It is hoped that the acquisition will enable the technology to move to a more industrial scale, complementing and strengthening Clearstream’s current fund processing and distribution offering through its platform, Vestima.
Olivier Portenseigne, CEO of FundsDLT said: “Becoming part of the Deutsche Börse Group is an exciting step for FundsDLT and is timely to accelerate our growth.
“Clearstream has a long history of driving innovation and shares our vision, values, and our commitment to this new generation of market infrastructure.
“Our goal is to enable fund distributors and asset managers, thanks to blockchain and fund tokenisation, to simplify their business and operating model and roll out the technology foundation to enable their clients to connect to fund products anywhere, in an easier and in a more cost-effective manner.”
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