- Partnership underlines joint commitment to further progress digitization of the financial markets
- Investment dedicated to accelerate DVS’s offering as a market infrastructure solution for the issuance and safekeeping of digital guarantees
- DVS’s Guarantee Vault to connect to Deutsche Börse’s digital post-trade platform D7 mid-term, broadening its digital asset service portfolio into the non-securities space
Clearstream, Deutsche Börse’s post-trade business, intends to make an investment in Digital Vault Services (DVS), a fintech offering issuance and safekeeping services for digital bank guarantees and sureties in Europe. The investment enables DVS to further enhance and broaden its offering as a market infrastructure solution for corporates and financial institutions such as banks and insurers. The investment will be done in exchange for a minority stake and is expected to be completed in the second half 2024. Financial details were not disclosed.
The mid-term plan will be to integrate DVS’s Guarantee Vault with D7, the digital post-trade platform of Deutsche Börse and its post-trade business Clearstream. This will allow D7 for the first time to expand its digital asset product portfolio to non-securities.
D7 provides a fully digital alternative to conventional physical issuance and managing of financial securities, reducing the time-to-market for securities from days to minutes. DVS’ Guaranteed Vault product provides a digital solution allowing corporates to centrally issue and store bank guarantees that are required across different segments as industry standard.
Jens Hachmeister, head of Issuer Services & New Digital Markets at Clearstream, said in a statement: “Digital leadership is a central part of Deutsche Börse Group’s Horizon 2026 strategy. The companies’ shared commitment to market innovation makes DVS a perfect fit for Deutsche Börse and Clearstream. 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 and deliver value for our clients and ultimately the entire financial industry.”
Ludger Janssen, co-CEO of Digital Vault Services, said in a statement: “Clearstream has emerged as a strategic ally for DVS, echoing our dedication to streamlining processes and recognizing the transformative potential of digitization in the financial industry, in particular with regards to guarantee management. With technology as our foundation, together with Clearstream and our central and digital guarantee registry, we foresee a unique end-to-end solution that disrupts and modernizes outdated procedures with unparalleled efficiency.”
Jaime Gimeno, co-CEO of Digital Vault Services, said in a statement: “Back in 2018, when designing a solution to the cumbersome paper-based process for issuing and storing guarantees, we took inspiration from the central securities depository model used in the securities industry. This strategic partnership with Clearstream now represents a major milestone in our growth journey towards becoming the recognized market infrastructure solution for guarantees in Europe. As we move forward the partnership also positions DVS for exciting new use cases and instruments.”