Clearstream to Acquire a Minority Stake in Digital Vault Services

Clearstream, a post-trade division for Deutsche Börse, is planning to invest in Digital Vault Services (DVS), as it plans to expand its offerings in digitizing financial services.

Deutsche Börse is one of the largest exchange operators in Europe. The planned acquisition of DVS by Clearstream needs to meet the approval of regulators for it to go through.

Once the legal documentation and regulatory approvals are finalized, the Deutsche Börse unit plans that the acquisition of a minority stake in the company will be closed in the second half of the year.

Clearstream to Invest in Digital Vault Services

Once the investment goes through, Digital Vault Services will expand its offerings as a leading market infrastructure solution that is used by financial institutions and corporations.

The partnership between Clearstream and DVS will leverage the potential of the two companies. It will bring together the approach of the DVS to digital banking while ensuring Clearstream can offer unique market infrastructure solutions and connectivity.

The partnership also plans to streamline different processes. It will modernize any outdated procedures in the trade finance industry to ensure that the platform can access a wide range of offerings.

Deutsche Börse is Modernizing Offerings

While commenting on this development, the Head of Issuer Services & New Digital Markets at Clearstream, Jens Hachmeister, opined that the companies were committed to leveraging market innovation. Moreover, DVS was well suited as a perfect choice for Clearstream and Deutsche Börse to tap into digitized services.

“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,” Hachmeister said.

One of the offerings that Deutsche Börse seeks to improve through the services offered by DVS is its digital post-trade platform, D7. The offering will ensure that D7 can expand its digital asset product portfolio beyond the securities market for the first time.

The executive team at DVS also believes in this offering. They believe that the deal will create a unique end-to-end solution that will disrupt and modernize outdated procedures to improve efficiency and the available offerings.

This investment is also a crucial milestone in the efforts being made by DVS to emerge as a reputable market infrastructure solution. It will also make DVS achieve more adoption by financial companies looking for market infrastructure solutions that will help them transform their offerings to align with the evolving digital landscape.

DVS is not the first company that Clearstream seeks to work with to improve offerings. The platform also expanded its partnership with iCapital to support broader access to private markets.