Deutsche Börse acquires outstanding shares of FundsDLT
By Gloria Methri
Global market infrastructure provider Deutsche Börse Group is acquiring the remaining shares in digitised fund distribution platform FundsDLT. The Luxembourg-based company is a decentralised platform based on distributed ledger technology (DLT) for end-to-end fund distribution and processing.
The acquisition is expected to be completed in the fourth quarter of 2023 or the first quarter of 2024, subject to regulatory approval.
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.
As a key strategic partner and minority shareholder of FundsDLT since its initial stages, Deutsche Börse Group has helped the platform to grow, driving efficiency and transparency for Clearstream clients.
FundsDLT has demonstrated the advantages of a blockchain-based distribution model for investment funds in several locations across Europe and Asia and is one of the leading solutions for digital cross-border distribution.
The acquisition of all outstanding shares of FundsDLT by Deutsche Börse’s corporate venture capital arm DB1 Ventures will make FundsDLT an integral part of Clearstream’s fund service offering. The integration will drive existing live blockchain-based end-to-end fund transactions, backed by Clearstream’s fund processing platform Vestima, allowing more efficient, scalable, and faster fund investing for all market participants.
“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,” stated Philippe Seyll, CEO of Clearstream Fund Centre S.A. “It enriches distribution capabilities, 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,” he added.
“Becoming part of the Deutsche Börse Group is an exciting step for FundsDLT and is timely to accelerate our growth,” explained Olivier Portenseigne, CEO of FundsDLT. “Our goal is to enable fund distributors and asset managers, thanks to blockchain and fund tokenization, 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 more cost-effective manner,” he added.
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