Deutsche Börse Starts New Partnership with Cashlink To Enhance the Buying Securities Process
The Deutsche Börse Venture Network, known as the venture capital branch of the German financial marketplace, has started a new partnership that is set to ease the way that institutional investors can get securities in the market.
According to the press release, a deal was made with Cashlink, a local fintech firm. With this deal, investors from the company will be able to use blockchain technology to complete the funding process of buying digital securities.
Peter Fricke, the director of the Deutsche Börse Venture Network, affirmed that the new partnership will be important as a way to simplify the process of raising capital for companies. He claims that the whole project will be created in accordance with the existing framework in the country and that startups will see that the process for raising capital will be eased by the efficiency of the new system.
“With this new offering from our partner, we are able to simplify the process of raising capital for startups on our network, and all within an existing regulatory framework,”
He also highlighted that the two companies already have a good relationship since 2016, when Cashlink worked with them for the first time in Frankfurt. Since then, they have operated together on several projects.
The CEO of Cashlink, Michael Duttlinger, talked about how digital securities can be used for several different purposes. He defends that this is making them considerably more popular as of late, which also increases the need for these products.
“Digital securities are used for various purposes, for example as an alternative to regular venture financing, as digital employee shares ownership, as a digital representation of venture funds or for funding for non-European investors.”
In related news, Deutsche Börse has recently completed a trial with Commerzbank, another bank from Germany, for the settlement of tokenized securities. The trial used the blockchain technology and it was considered successful by both parties. Commerzbank even defined it as a new milestone for the use of this technology in post-trade services.