HQLAx’s core clients are financial institutions active in securities lending and collateral management
Luxembourg fintech company HQLAx has raised €14.4m in funding from BNY Mellon, Goldman Sachs, BNP Paribas Securities Services, Citigroup and existing shareholder Deutsche Börse, the startup said on Monday.
HQLAx provides collateral lending solutions to help the market redistribute collateral liquidity more efficiently. Using distributed ledger technology, it allows the real time legal title transfer of securities, among other functionalities.
The company says its platform will help lenders overcome fragmented infrastructure for securities, which is causing operational bottlenecks and higher costs.
“Our company has come a long way from starting out as a concept in an R3 Laboratory to partnering with Deutsche Börse and going into production with early adopters Commerzbank, Credit Suisse and UBS,” said CEO and chairman Guido Stroemer in a statement.
“Closing this strategic investment round with BNP Paribas Securities Services, BNY Mellon, Citigroup and Goldman Sachs is another major step towards market adoption,” he said.
HQLAx’s core clients are financial institutions active in securities lending and collateral management.
The new funds will go towards accelerating the core premise of the company’s platform, it said in a press release - “helping the industry address European collateral fragmentation by extending its connectivity to leading triparty agents, custodians and market participants.”
The company was selected as one of the FinTech50 last year, a ranking by an international panel of the 50 fintech companies in Europe to watch.