Deutsche Börse has announced it wants to buy out FundsDLT, a decentralised DLT platform founded by Luxembourg financial industry players in 2016.
According to a press statement on the Clearstream website, the acquisition of remaining funds through its VC arm DB1 Ventures is expected to close in Q4 of 2023 or Q1 2024, pending regulatory approval.
“This step will enable the technology to move to a more industrial scale, complementing and strengthening Clearstream’s current fund processing and distribution offering,” Deutsch Börse writes, adding: “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.”
Initially created by the Luxembourg Stock Exchange and Fundsquare, FundsDLT enables asset managers, asset services, distributors and advisors to sell funds through a new generation and decentralised platform.
Deutsche Börse Group bought into the FundsDLT in 2020 in order to carry out fund subscriptions on blockchain infrastructure.
In January 2021, Clearstream processed its first live blockchain-based end-to-end fund transactions, using FundsDLT, with Zürcher Kantonalbank (ZKB).
