Clearstream, the post-trade division of Deutsche Börse Group, recognizes the growing importance of digitization in the financial industry. Because of this, it has revealed its intention to acquire a minority stake in Digital Vault Services (DVS), a fintech company specializing in issuing and safeguarding digital bank guarantees and sureties across Europe.
The investment, which is subject to regulatory approvals and finalization of legal documentation, is expected to close in the second half of 2024.
Clearstream Announces Strategic Investment in Fintech Startup
The strategic partnership between Clearstream and DVS aims to leverage the strengths of both companies. By combining DVS's approach to digital bank guarantees with Clearstream's experience in providing market infrastructure solutions and connectivity , the collaboration seeks to streamline processes and modernize outdated procedures in the trade finance ecosystem.
“The companies’ shared commitment to market innovation makes DVS a perfect fit for Deutsche Börse and Clearstream,” commented Jens Hachmeister, the Head of Issuer Services & New Digital Markets at Clearstream. “We are convinced that DVS’s innovative approach to digital bank guarantees, combined with D7’s track record in digitizing securities and Clearstream’s central role in global financial markets, will drive significant growth.”
The mid-term plan integrates DVS's Guarantee Vault with D7, Deutsche Börse's digital post-trade platform. This will enable D7 to expand its digital asset product portfolio beyond securities for the first time.
Ludger Janssen and Jaime Gimeno, the Co-CEOs of Digital Vault Services, believe the collaboration will result in “a unique end-to-end solution that disrupts and modernizes outdated procedures with unparalleled efficiency.”
The investment marks an important milestone in DVS' growth journey towards becoming the recognized market infrastructure solution for guarantees in Europe. It also positions the company for future use cases and instruments.
The investment will result in Clearstream acquiring a minority stake, which is anticipated to conclude in the second half of 2024, pending the necessary regulatory approvals and the completion of legal documents.
Cooperation with iCapital
Two months before announcing its investment in a European fintech , Clearstream expanded its collaboration with another financial technology company, iCapital. This expanded partnership will allow broader access to various private market investment opportunities curated by leading global asset managers. These investment options, provided through the iCapital Marketplace, will be available on the Clearstream Fund Centre and Clearstream Vestima platforms.
“With our ecosystem of scalable, secure, and integrated distribution and processing solutions, we are committed to supporting both ends of the distribution chain with data and services,” said Philippe Seyll, the Head of Clearstream Fund Services.
Clearstream oversees the security management, safekeeping, and administration in its custody. Currently, Clearstream holds more than 300,000 types of bonds, equities, and investment funds from domestic and international markets.
