Euronext has spent EUR5 million to acquire a 23.5% stake in digital asset startup Tokeny Solutions.
Luxembourg-based Tokeny Solutions enables mid-cap companies, investment banks, funds, asset managers and distributors to issue, manage and transfer tokenised securities as fully-compliant smart contracts on public blockchains.
Euronext says the investment complements its position in the nascent digital asset industry, combining Tokeny Solutions’ token management expertise with LiquidShare’s post-trade operations.
Euronext was one of seven founders of LiquidShare, set up in 2017 as a joint venture with other financial services firms in order to use distributed ledger technology to ease the post-trade processing of SME lending operations.
In a statement, the pan-European exchange says: "Tokeny Solutions will allow Euronext to onboard a renowned team in the digital asset industry, and broaden its client base towards private companies and investment firms. Convinced of the long term impact of tokenisation on the financial industry, Euronext is committed to developing solutions that continue to serve its clients and ecosystem going forward."