As a seasoned researcher with a keen interest in the evolution of financial technologies, I find Euroclear’s strategic investment in Marketnode, Singapore’s blockchain-based infrastructure provider, an intriguing move that signals the increasing convergence of traditional finance (TradFi) and digital assets.
The financial institution Euroclear, which handles securities clearing and settlement, has decided to invest strategically in Marketnode, a blockchain infrastructure provider based in Singapore. This is Euroclear’s initial investment in Asia and aims to bolster its presence within the region.
Euroclear looks toward APAC
Marketnode manages two services: the Gateway platform, focused on tokenization, and Fundnode, offering an infrastructure for handling transactions, money processing, and record keeping related to investments.
Fundnode’s integration will enhance Euroclear’s comprehensive platform, FundsPlace, for fund distribution. In a public announcement, Philippe Laurensy, the CEO of Euroclear APAC, stated: “… strengthening our one-stop-shop solution for funds.
“This first strategic investment in Asia reinforces the region’s importance to Euroclear’s positioning and business growth.”
The size of the Euroclear investment was not disclosed. Euroclear joins the SGX Group’s Singapore Exchange, Singapore’s state-owned Temasek fund and HSBC bank as co-owners of Marketnode.
In May, HSBC became a shareholder in Marketnode after participating in their Series A funding round. Notably, SGX and Temasek have been founding partners of Marketnode since the company was established in 2021.
A tightening web of securities settlement technologies
Pradyumna Agrawal, Temasek’s Investment Managing Director, noted that Euroclear acknowledges the hard work and growth potential of Marketnode within the global digital infrastructure sector.
Marketnode had been part of the first wave participating in the Monetary Authority of Singapore’s extensive, ongoing Project Guardian experiment involving tokenization.
As an analyst, I can confidently say that I’ve found Singapore to be a thriving hub for blockchain innovation. In the Henley Crypto Adoption Index 2024, it claimed the top spot among forward-thinking jurisdictions, leading the way in cryptocurrency adoption.
Euroclear, a key component of Traditional Finance (TradFi) infrastructure, made investments in the blockchain-based payment solution Fnality not just once, but twice – in March 2022 and again in November 2023. These strategic moves were intended to establish a foothold in the digital assets sector. With a massive volume of $1 quadrillion worth of securities transactions processed the year prior, Euroclear was already a significant player, seeking to further expand its presence.
Prior to this, Euroclear took part in an initial trial of Deutsche Boerse’s blockchain-based securities lending system back in 2019. More recently, in 2021, it joined the French central bank’s digital currency experiment.
Euroclear collaborated with SWIFT and various international financial service providers to establish interoperability. In October 2023, they launched a digital securities issuance platform and processed a €100-million ($106 million) World Bank bond. Additionally, in October 2024, they partnered with Digital Asset for securities tokenization projects.
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2024-10-18 00:53