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Global Custody Pro - 10 September 2025

Global Custody Pro - 10 September 2025

BMV launches central clearing for govt bonds, UniCredit, FNZ, ISDA, Coinshares and more

Global Custody Pro
September 09, 2025 • Reading Time: 9 minutes

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Welcome to Global Custody Pro, read by custody professionals like you. I'm Brennan McDonald, Managing Editor. I write about the global custody industry, having spent over 12 years in financial services, including working at a global custody bank. An AI voice reads the audio version of this newsletter. Have feedback? Just reply to this email or connect with us on LinkedIn.

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Mexico Launches Central Counterparty for Government Bonds

Grupo Bolsa Mexicana de Valores (BMV) announced that Mexico's banking regulator has authorised its Securities Central Counterparty to begin operations for government bond transactions. The CCV will initially provide clearing and settlement services for Bonos M, the company stated.

The launch represents a significant infrastructure upgrade for Mexico's financial markets. According to the announcement, the central counterparty model eliminates credit risk between market participants and ensures operational continuity during periods of market volatility. The company said the system standardises processes, reduces settlement amounts to free up liquidity, and removes entry barriers by eliminating the need for bilateral credit arrangements.

BMV indicated the CCV will expand in phases to include other local government debt instruments and government repo operations. The company stated that it continues to work with banks and brokerage firms to onboard them as clearing members, enabling the gradual adoption of the model. The initiative aims to strengthen financing for productive projects and boost growth in Mexico's securities market.

UniCredit Taps BNP Paribas, FNZ for Custody Revamp

UniCredit has selected BNP Paribas as its custody services partner for Italy and Germany, with additional support for Luxembourg, and has chosen FNZ to provide its cloud-based post-trade securities platform. The partnerships represent the next phase in the bank's securities services transformation, which aims to harmonise operations across its key markets.

The initiative builds on UniCredit's January announcement to internalise back-office activities for securities services, standardising operations and suppliers across countries. The move marks a strategic shift from the bank's previous approach of outsourcing these functions, particularly in Germany, where the majority of the 140 new positions are being created. The bank cited BNP Paribas's global footprint and operational excellence, alongside FNZ's scalable technology platform, as key factors in the partner selection.

Gianfranco Bisagni, UniCredit's Group Chief Operating Officer, emphasised the commitment to providing "a more secure, flexible and cost-efficient foundation" for the delivery of custody services. Marion Höllinger, CEO of HypoVereinsbank Germany, noted the investment strengthens in-house expertise and operational resilience while accelerating digital transformation, positioning the bank to "set a new standard for client-centric securities services in Germany and across Europe."

FICC Files SEC Rule for Collateral Service

DTCC announced that its Fixed Income Clearing Corporation subsidiary has filed with the SEC for approval to offer a new cleared tri-party offering known as the Sponsored General Collateral "Collateral-in-Lieu" service. The filing is expected to be published in the Federal Register soon, initiating a public comment period.

The proposed service addresses what the company describes as critical industry concerns regarding margin and capital efficiency for implementing the U.S. Treasury Clearing mandate. According to DTCC, the service is designed to leverage haircuts typically posted by dealers to money market funds via a CCP lien applied "in lieu" of both a Sponsor guaranty and margin posting, thereby solving for the "double-margining" challenge where Sponsors post both haircuts to money market funds and CCP margin.

FICC plans to offer the service leveraging BNY's tri-party infrastructure for collateral management and settlement, with a targeted launch in December 2025, subject to regulatory approval. Laura Klimpel, Managing Director and Head of DTCC's Fixed Income and Financing Solutions, noted that the existing Sponsored Service processes over $2 trillion in volume on a typical day.

ISDA warns porting not guaranteed in defaults

ISDA published a whitepaper warning derivatives market participants that regulatory porting mechanisms cannot guarantee the successful transfer of client positions when clearing providers default. The organisation emphasises that clients accessing central counterparties through client clearing service providers should prepare for potential default scenarios despite regulatory protections.

The guidance highlights critical trade-offs between clearing arrangement costs and porting success rates. Clients using EU or UK omnibus account structures face "extremely challenging" porting prospects compared to individually segregated accounts, though the latter carry higher costs. The organisation notes that maintaining multiple clearing relationships improves transfer options but reduces margin efficiency and increases fees.

ISDA recommends clients actively monitor their clearing providers' creditworthiness and consider whether positions require protection or could withstand forced liquidation. The organisation warns that central counterparties will trigger default management procedures within days or hours if porting fails, potentially closing out client positions regardless of strategic importance.

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🚀 Digital Asset News

CoinShares announces $1.2B U.S. listing via SPAC

CoinShares International Limited announced on September 8, 2025, that it will go public in the United States through a business combination with special purpose acquisition company Vine Hill Capital Investment Corp., valuing the European digital asset manager at US$1.2 billion pre-money. The company, which manages approximately US$10 billion in assets and ranks as the fourth-largest crypto exchange-traded product manager globally behind BlackRock, Grayscale, and Fidelity, reported adjusted EBITDA margins of 76% in the first half of 2025.

The transaction represents a strategic shift for CoinShares from its current Nasdaq Stockholm listing to the U.S. market, where CEO Jean-Marie Mognetti stated the company aims to deploy its "European playbook" to capture opportunities in the world's largest asset management market. The company has experienced significant growth, with assets under management more than tripling over the past two years, driven by investor inflows, supportive digital asset pricing, and new product launches across its 32-product suite.

The business combination, which includes a US$50 million anchor investment from an institutional investor, is expected to close by the end of Q4 2025, subject to shareholder and regulatory approvals. Nicholas Petruska, CEO of Vine Hill, highlighted CoinShares's "recurring fee-based revenue model" and "consistently impressive ~70% adjusted EBITDA margins" as key investment attractions, with the transaction priced at 7.3x enterprise value to 2024 EBITDA versus peer averages of 20.9x.

21X Launches Blockchain Securities Trading Exchange

21X has announced the launch of its exchange for tokenised cash and securities, which the company describes as the world's first exchange to enable smart contract-based matching and settlement. The Frankfurt-based financial institution stated its platform allows atomic trading and settlement of securities within two seconds, operating under regulatory oversight from BaFin, Bundesbank and ESMA.

The platform follows the successful opening of 21X's primary market in May, which saw the listing of the first tokenised note. According to the company, investors can use stablecoins, other forms of digital cash and fiat money to buy and sell tokenised assets following participation in trials of the European Central Bank. Unlike traditional exchanges, 21X states it provides access to corporate clients and institutional investors in addition to banks and financial institutions.

Chief Executive Max J. Heinzle said the launch marks the "Spotify moment" for capital markets where "on-chain is the new online," claiming the platform can reduce participant costs by more than 50 percent while enabling wallet-based access. The exchange currently operates weekdays from 8am to 5pm CET, with plans to expand to 24/7 trading. The company reports securing over 30 exchange participant agreements with more than 100 financial instruments in the pipeline.

Tetra Raises $10M for Canadian Stablecoin

Tetra Digital Group announced the closing of approximately $10 million in investment from seven leading Canadian financial service providers and fintechs, including Wealthsimple, National Bank of Canada, and Shopify. The company aims to launch Canada's first regulated stablecoin in early 2026, subject to regulatory approval, marking the first time a regulated financial institution will work towards issuing a stablecoin in the country.

The new Tetra stablecoin will be backed 1-for-1 by Canadian dollar reserves and built on the company's institutional-grade custody infrastructure. Tetra Trust, Canada's first regulated digital asset custodian, will act as the issuer. The initiative brings together traditional financial institutions with fintech innovators, with Thomas S. Caldwell, Chairman of Urbana Corporation, and executives from Wealthsimple, Purpose Unlimited, and Shakepay expressing strong support for the project as a defining moment for Canada's digital economy.

The stablecoin launch aligns Canada with the approaches of other G7 countries to regulated digital currencies. It aims to provide businesses and consumers with a stable, secure, and fully compliant digital payment solution. Didier Lavallée, CEO of Tetra Digital Group, emphasized the initiative supports homegrown solutions built by Canadians for Canadians while maintaining economic sovereignty. The company is inviting additional qualified institutions to join the initiative as part of a broader effort to shape the future of Canadian digital payments.