Clearstream has announced its strategic move towards embracing the digital revolution in the financial industry. The company is going to acquire a minority stake in Digital Vault Services (DVS), a fintech firm specializing in the issuance and protection of digital bank guarantees and sureties across Europe.
The investment, contingent upon regulatory approvals and the finalization of legal formalities, is going to be finished in the latter half of 2024.
The collaboration between Clearstream and DVS aims to capitalize on the respective strengths of both entities. By amalgamating DVS’s expertise in digital bank guarantees with Clearstream’s proficiency in delivering market infrastructure solutions and connectivity, the partnership seeks to streamline processes and bring about a modernization wave in the trade finance ecosystem.
Clearstream Ventures into Fintech with Digital Revolution
Also, Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, expressed enthusiasm about the partnership, stating, “The companies’ shared commitment to market innovation makes DVS a perfect fit for Deutsche Börse and Clearstream. We are happy 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.”
Moreover, the strategic roadmap involves integrating DVS’s Guarantee Vault with D7, Deutsche Börse’s digital post-trade platform. This integration will mark D7’s expansion into digital asset products beyond securities for the first time.
Also, Ludger Janssen and Jaime Gimeno, Co-CEOs of Digital Vault Services, anticipate that the collaboration will yield “a unique end-to-end solution that disrupts and modernizes outdated procedures with unparalleled efficiency.”
For DVS, this investment signifies a pivotal moment in its growth trajectory toward becoming the go-to market infrastructure solution for guarantees in Europe. Additionally, it positions the company to embrace future use cases and instruments in the dynamic financial landscape.
The investment will see Clearstream acquiring a minority stake in DVS is subject to regulatory approvals and the completion of legal formalities.
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