Global market infrastructure provider Deutsche Börse Group has confirmed it will acquire the remaining shares of FundsDLT.
The acquisition, made by Deutsche Börse's DB1 Ventures, will complement and strengthen the fund processing and distribution offerings of Deutsche Börse’s post-trade infrastructure provider Clearstream.
The integration will drive existing live blockchain-based end-to-end fund transactions, backed by Clearstream’s fund processing platform Vestima.
In March 2020, and 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.
FundsDLT has now successfully demonstrated the advantages of a blockchain-based distribution model for investment funds in several locations across Europe and Asia, says Deutsche Börse.
The acquisition of FundsDLT’s remaining shares is expected to be completed in the fourth quarter 2023 or the first quarter 2024, subject to regulatory approval.
Philippe Seyll, CEO of Clearstream Fund Centre, says: “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, and 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.”
Olivier Portenseigne, CEO of FundsDLT, comments: “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.”
