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Euroclear acquires private markets fintech Goji

Acquisition, Euroclear, GojiBrussels-based post-trade services group Euroclear has signalled a push into the private funds market following its acquisition of London-based fintech Goji.

The acquisition will enable Euroclear to build a digital platform to enable greater access for investors.

It follows Euroclear’s purchase of the MFEX funds distribution platform.

It also comes at a time when private market assets are expected to grow from $9.8 trillion to $14.4 trillion by 2025.

A recently published report from rating agency Moody’s concluded that greater use of distributed ledger technology and tokenisation would improve access to the private funds market and also add liquidity to assets that are typically seen as illiquid.

While the report states that tokenisation can remove friction in the system, it also highlights some of the potential risks from greater use of the technology.

“Adoption of blockchain technology is in its infancy,” said Alexandra Aspioti, senior analyst at Moody's Investor Service.  “Regulation is evolving. There is also a possible reputational risk to asset managers should tokenized illiquid assets fail to perform as expected.

“Lastly, fraud risk will rise, including potential cyber security breaches that would cause market disruption and expose fund managers to fines and negative publicity," she concluded.

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