Post-trade group Euroclear has further bolstered its blockchain capabilities after acquiring a stake in the pan-European, blockchain-based funds distribution platform Iznes.
The transaction, for which no financial details were disclosed, adds to Euroclear’s other investments in the blockchain and digital technology market.
These include the 2021 acquisition of digital fund distribution platform MFEX and last year’s purchase of private funds digital marketplace Goji.
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Iznes uses blockchain technology for the subscriptions and redemptions of shares of European funds to make them compatible with multiple distribution channels.
The Iznes transaction is a further example of post-trade and market infrastructure providers such as Euroclear adopting blockchain technology to update its capabilities and to remain relevant in the future.
It is typically the established infrastructure players and post-trade groups that are highlighted as under threat from distributed ledger technology designed to remove intermediaries from the processing chain.
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“We are convinced that the mutualisation of data and further automation of processes, supported by digital technologies, have a real potential to reduce the overall cost of funds distribution,” said Philippe Laurensy, head of product, strategy and innovation at Euroclear.
According to Christophe Lepitre, Iznes CEO, the deal with Euroclear is a “milestone” in the company’s development.
“We are convinced that together we must continue to build innovative solutions that make the most of blockchain technology for the greater benefit of our customers. IZNES and its shareholders are delighted at this prospect.”
