Euroclear eyes Asia’s blockchain potential with stake acquisition in Singapore’s Marketnode

Euroclear, a major securities settlement house based in Belgium, has entered Asia by acquiring a “strategic stake” in Marketnode, a Singapore-based operator specializing in blockchain for financial market infrastructure.

Euroclear announced on Thursday that this is the firm’s first strategic investment in Asia and it aims to participate in the establishment of a market infrastructure in Asia Pacific “designed to simplify the management of funds flows and reduce settlement times by using new technology.”

While the European clearing house declined to disclose the investment size, the firm said it joins Marketnode’s major shareholders, including SGX Group, Temasek and HSBC. In May 2024, Marketnode closed its series A financing round, led by HSBC.

Founded in 2021 by SGX and Temasek, Marketnode mainly operates two platforms — Gateway and Fundnode. Gateway serves as an end-to-end platform that leverages tokenization, and Fundnode runs Singapore’s investment fund infrastructure on blockchain, according to the firm’s statement. Euroclear added that it intends to bolster the growth of Euroclear FundsPlace’s fund offering with the new investment.

“This first strategic investment in Asia also reinforces the region’s importance to Euroclear’s positioning and business growth,” said Philippe Laurensy, CEO of Asia Pacific markets at Euroclear. “We are excited to join Marketnode’s pioneering journey in the rapidly growing area of digital assets and support the company’s international service expansion.”

Pradyumna Agrawal, managing director of investment at Temasek, said that Euroclear’s partnership can provide Marketnode with expertise and access to a broader ecosystem, “reinforcing Singapore’s position as a leading financial hub for funds.”

Euroclear appears to have identified blockchain as a critical investment area. For example, it has invested multiple rounds in Fnality, a London-based blockchain payments firm, in 2022 and 2023.