In recent years, there has been an increase in the adoption of digital assets among institutional investors. While traditional assets and digital assets share certain similarities, it is crucial for investment managers to be able to confidently navigate the complexities of digital financial markets with purpose-built, institutional infrastructure.

By extending far beyond standard digital asset broker connectivity, the partnership will enable mutual clients to holistically manage digital assets, including cryptocurrencies, tokenized securities, and institutional decentralized finance within SimCorp’s front-to-back investment management platform. This unique, industry-first solution will consequently provide joint clients with one single source of truth for traditional, alternative and digital asset classes.

“One of SimCorp’s core value propositions has always been a single, integrated system for all asset classes. Our research has shown the market lacks a system covering digital, traditional, and alternative asset classes in one platform. We believe that digital assets are coming of age, and it is time to integrate them properly to provide a holistic view across all asset classes on a single platform. Together, SimCorp and Alloy will be uniquely positioned to offer exactly that to our shared clients: one integrated platform to manage truly all asset classes,” says Niels Jacobsen, Principal Product Manager at SimCorp.

“Alloy and SimCorp share the same mindset, both dedicated to providing turnkey solutions and taking away complexities wherever possible. In the digital assets space, there are still many operational complexities our clients should not need to worry about on a daily basis,” Niels Jacobsen continues.

“With this partnership, Alloy enables SimCorp’s clients to access the digital asset markets and manage this asset class in a consistent, safe, robust, and scalable way, similar to their traditional assets.” Paul Faecks CEO and co-founder, Alloy

Alloy simplifies the process of managing and implementing digital asset investment strategies, with a front-to-back investment platform that combines a suite of proprietary tools with regulatory compliant digital asset operations, deep analysis & monitoring capabilities, as well as counterparty-agnostic management of assets.

This will provide mutual clients with a future-proof solution to access the full spectrum of digital assets: cryptocurrencies, tokenized securities, institutional digital custody, multi-venue trading, borrowing and lending as well as a wide range of sophisticated decentralized finance opportunities.

“There has been considerable attention on digital assets within fintech for the better part of a decade - however mostly focused on best-of-breed, crypto-native point solutions. It’s only more recently that we’ve observed the convergence of mature infrastructure and holistic, asset management-centric, approaches that render digital assets both relevant, and attractive to the kind of institutional investment managers that SimCorp primarily serves,” says Paul Faecks, CEO and co-founder of Alloy.

“With this partnership, Alloy enables SimCorp’s clients to access the digital asset markets and manage this asset class in a consistent, safe, robust, and scalable way, similar to their traditional assets.” continues Paul Faecks.

Alloy’s clients range from family offices to hedge funds, and listed asset managers.

SimCorp has experienced more interest in digital assets from our clients in 2023 compared to previous years. At the same time, there has been a consolidation among the digital asset start-ups. This combination indicates that digital assets are maturing for regulated institutional investors. - Anders Kirkeby Head of Open Innovation, SimCorp

Earlier this year, SimCorp conducted a survey among its clients in institutional investment management. The result indicates that digital assets are still in their early stages but gaining momentum, with more than 10 percent of participants actively exploring this space, and a few having already made investments, primarily among the largest asset managers.

The respondents’ motivation was driven by client demand and the potential for revenue diversification. Both of which may increase with the advancements in infrastructure as well as recent developments in the tokenized asset space.

“SimCorp has experienced more interest in digital assets from our clients in 2023 compared to previous years. At the same time, there has been a consolidation among the digital asset start-ups. This combination indicates that digital assets are maturing for regulated institutional investors,” says Anders Kirkeby, Head of Open Innovation at SimCorp.

“We are pleased to welcome Alloy and its team of digital assets pioneers and investment industry experts to our Open Platform partner ecosystem. We have confidence in Alloy’s ability to enable SimCorp clients in exploring the benefits of incorporating digital assets into their investment portfolios, as well as understanding the necessary processes needed for these asset classes,” Anders Kirkeby continues.

SimCorp is a subsidiary of Deutsche Börse Group, an international exchange organization and innovative market infrastructure provider. As part of its strategic focus, Deutsche Börse Group is driving the expansion of its leading position in the area of digital platforms for existing and new asset classes.