Clearstream, the post-trading business of Deutsche Börse, intends to make an investment in Digital Vault Services (DVS), a fintech pioneer that offers issuing and custody services for digital bank guarantees and guarantees in Europe.
The investment is subject to applicable regulatory approvals and finalization of legal documentation.
The investment enables DVS to further enhance and expand its offering as a market infrastructure solution for companies and financial institutions. The medium-term plan will be to integrate DVS’s Guarantee Vault with D7, Deutsche Börse’s digital post-trade platform and its Clearstream post-trade business. This will allow D7 for the first time to expand its digital asset product portfolio into non-securities.
With DVS’ established offering in Europe combined with Clearstream’s leverage and experience offering market infrastructure solutions and connectivity, both parties seek to add value to the trade finance ecosystem of businesses, banks and insurers.
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Clearstream, said:
“Digital leadership is a central part of Deutsche Börse Group’s Horizon 2026 strategy. The companies’ shared commitment to market innovation makes DVS ideal for Deutsche Börse and Clearstream. We are confident that DVS’s innovative approach to digital bank guarantees, combined with D7’s track record in securities digitization and Clearstream’s central role in global financial markets, will drive significant growth and deliver value for our clients and ultimately for the entire financial industry.”
Ludger Janssen, Co-CEO of Digital Vault Services, added:
“Clearstream has emerged as a strategic ally for DVS, echoing our commitment to streamlining processes and recognizing the transformative potential of digitization in the financial industry, particularly in collateral management. With technology as the foundation, together with Clearstream and the centralized and digital collateral registry, we envision a unique end-to-end solution that disrupts and modernizes antiquated processes with unparalleled efficiency.”
Jaime Gimeno, Co-CEO of Digital Vault Services, added:
“In 2018, when designing a solution for the cumbersome paper-based collateral issuance and storage process, we drew inspiration from the central securities depository model used in the securities industry. This strategic partnership with Clearstream now represents an important milestone in our growth journey towards becoming the recognized market infrastructure solution for sureties in Europe. As we move forward, the partnership also positions DVS for exciting new cases and instruments.”
The investment will be made in exchange for a minority stake and is expected to be completed in the second half of 2024, subject to applicable regulatory approvals and the finalization of legal documentation.