Deutsche Boerse Group,, announced this Tuesday that it has made a sizeable investment in HQLAx, a provider of liquidity solutions to institutional investors.
In their statement, Deutsche Boerse did not reveal exactly how much money they will be pumping into HQLAx. The firm only noted that it was in a “single-digit euro million amount” that will enable it to become a minority shareholder in the firm.
Deutsche Boerse’s investment also means they will have two of their own employees on the HQLAx board. , who is in charge of the Deutsche Boerse’s Global Securities Financing business, and , who is responsible for the development of blockchain initiatives, were named as the two new board members.
Deutsche Boerse HQLAx – building the blockchain
The exchange operator’s investment in HQLAx is not entirely surprising as the two companies already had existing ties. In March of this year, Deutsche Boerse to create a securities lending solution, based on the R3 Corda blockchain.
R3 is a that is developing open-source and enterprise-specific blockchain software. Deutsche Boerse seems to be making good use of the technology via its partnership with HQLAx. In its statement, the firm noted that banks are already signing up to use the service and the firm is in talks with regulatory authorities to ensure it can be operational.
It also appears that this will not be Deutsche Boerse’s last investment in HQLAx. Tuesday’s statement also noted that the firm “is likely to acquire further shareholdings in HQLAx around year-end.”
HQLAx is the second blockchain-based investment made by Deutsche Boerse’s investment arm, DB1 Ventures. In late 2017, the firm confirmed that it become a minority shareholder in New York-based Digital Asset Holdings, a blockchain software developer.
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