Clearstream to Acquire Minority Stake in Fintech Startup

Clearstream, the post-trade division of Deutsche Börse Group, has announced plans to acquire a minority stake in Digital Vault Services (DVS), a fintech company specialising in digital bank guarantees and sureties across Europe.

The investment, contingent on regulatory approvals and finalisation of legal documentation, is slated to conclude in the latter half of 2024.

The strategic partnership between Clearstream and DVS aims to capitalise on their respective strengths. By merging DVS’s expertise in digital bank guarantees with Clearstream’s market infrastructure solutions and connectivity, the collaboration seeks to streamline processes within the trade finance ecosystem.

Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, remarked, “The shared commitment to market innovation makes DVS an ideal fit for Deutsche Börse and Clearstream. We believe that DVS’s innovative approach, combined with Clearstream’s central role in global financial markets, will drive significant growth.”

The mid-term strategy involves integrating DVS’s Guarantee Vault with D7, Deutsche Börse’s digital post-trade platform. This integration will expand D7’s digital asset product portfolio beyond securities.

Ludger Janssen and Jaime Gimeno, Co-CEOs of Digital Vault Services, anticipate that the collaboration will lead to “a unique end-to-end solution that disrupts and modernises outdated procedures with unparalleled efficiency.”

The investment represents a significant milestone in DVS’ growth trajectory towards becoming the recognized market infrastructure solution for guarantees in Europe, positioning the company for future use cases and instruments.

Clearstream’s acquisition of a minority stake is expected to be finalised in the latter half of 2024, subject to regulatory approvals and legal formalities.

Collaboration with iCapital

In a separate development, Clearstream recently expanded its collaboration with iCapital, another financial technology company. This enhanced partnership aims to provide broader access to various private market investment opportunities curated by leading global asset managers.

These investment options, available through the iCapital Marketplace, will be accessible on Clearstream’s Fund Centre and Clearstream Vestima platforms.

Philippe Seyll, Head of Clearstream Fund Services, stated, “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.”

Clearstream currently manages security, safekeeping, and administration in its custody, holding over 300,000 types of bonds, equities, and investment funds from domestic and international markets.