The new trading platform facilitates investment in asset classes that have so far been illiquid, such as art and real estate.
Deutsche Börse and Commerzbank have partnered with fintech 360X to develop new blockchain-based digital marketplaces and ecosystems for existing real asset classes such as art and real estate. The first reference transaction (minimum viable product) for two asset classes is planned for this year.
Deutsche Börse will leverage its experience as a market infrastructure operator, while Commerzbank will act as a partner for the digital banking, and 360X provides the fintech talent to develop the digital marketplaces to generate new revenue potential.
Carlo Kölzer, founder and CEO of 360X, commented: “Our mantra is ‘Making Things Investable – Bridging the Gap between Asset Classes and Capital Markets’. We create transparent and liquid trading venues for assets that have not yet existed in digital markets. We are therefore starting with trading venues for art and real estate. 360X is set up as a highly scalable model so further asset classes will follow.” Carlo Kölzer and his team founded 360T, the world’s leading electronic foreign exchange trading platform, in Frankfurt in 2000.
The assets will be made investable and tradable via tokenization and fractionalization. Tokenized real assets are mapped on blockchain to facilitate access for investors and allow the fractionalization of the underlying asset.
The three partners maintain the highest standards of legal certainty, data protection, and compliance with regulatory frameworks as well as for the establishment of an orderly secondary market.
Carlo Kölzer: “360X aims at a megatrend. Digital assets are an exponential growth market. We create new ecosystems and offer investors innovative investment opportunities in assets which they did not have access to before. This creates added value for the financial sector.”
Carlo Kölzer is a founding partner and member of 360T’s Group Executive Board. Furthermore he is Global Head of FX of Deutsche Börse Group.
Both banks have longstanding experience with DLT technology, with joint pilot transactions having been executed via DLT for the first time in 2019.
Theodor Weimer, CEO of Deutsche Börse AG: “I am convinced that Deutsche Börse has to venture into new asset classes. In the future, we will see broad tokenization and digitization of assets that are not tradable today. 360X is the new innovative platform for serial marketplace creation that we are building with our partners.”
Manfred Knof, CEO of Commerzbank AG: “We take real assets to digital marketplaces. With our and Deutsche Börse’s investment in 360X we see the potential to actively shape one of these digital asset ecosystems of the future. Commerzbank has many years of experience with DLT technology and is a sought-after expert in the emerging asset universe. With pilot transactions in the areas of payments, securities and trade finance, as well as strategic partnerships with technology and internet companies, and cooperation with DLT networks, Commerzbank is a reliable partner in tomorrow’s digital banking.”
The announcement comes at a time European financial centers are accelerating the pace of innovation post-Brexit. Two leading companies from the financial sector and an experienced team of fintech founders combine their strengths in Frankfurt.
360X will drive the serial construction and operation of new marketplaces and ecosystems for digital asset classes. Deutsche Borse reportedly invested a sum of €10 million in exchange for a 50% stake in the new firm. Commerzbank also holds a significant percentage of 360X total shares while the rest of the shares belongs to the founders of the company as well as its private investors.