Euroclear, a global provider of financial market infrastructure, has made its first foray into Asia by acquiring a strategic stake in Marketnode, a Singapore-based digital market infrastructure firm specializing in blockchain tech. 

The investment by Euroclear is aimed at leveraging blockchain to modernize financial market infrastructure, focusing on simplifying fund management and reducing settlement times through distributed ledger technology. The financial terms of the deal were not disclosed.

Euroclear is a global financial services company that provides post-trade services, including the settlement of securities transactions, custody of financial assets, and collateral management.

Singapore state-owned investment company Temasek, one of Marketnode’s founding shareholders, positioned the deal as a significant endorsement of Singapore’s financial innovation. 

The city-state has emerged as a hub for blockchain technology, driven by government support and strategic investments from key players. It has also cultivated an innovation-friendly regulatory framework, attracting global firms seeking to capitalize on blockchain and digital asset tokenization.

“Partnering with Marketnode demonstrates our shared commitment to developing a new generation of funds market infrastructure by leveraging Euroclear’s global footprint, established fund infrastructure, and digital capabilities,” Philippe Laurensy, CEO of Euroclear’s Asia Pacific markets, said in a statement.

Marketnode, founded in 2021 by SGX Group and Temasek, operates two blockchain-powered platforms, Gateway and Fundnode, which focus on tokenization and digital fund management. 

Fundnode, one of Marketnode’s flagship platforms, uses blockchain to streamline fund transactions, processing, and record-keeping. 

Marketnode’s use of tokenization and DLT has drawn attention in the financial sector, with HSBC investing in the company earlier this year.

“Euroclear’s global connectivity, operational expertise, and market-leading position as a trusted financial market infrastructure will catalyze the growth of Marketnode’s platforms, especially Fundnode,” Rehan Ahmed, CEO of Marketnode, said in the statement.