Expect more investment flows between Europe and Asia amid US uncertainty: Euroclear CEO Valerie Urbain

Business Times

12-05-2025

[SINGAPORE] There will likely be more investment flows between Europe and Asia as volatility and uncertainty persist in the US, said Valerie Urbain, chief executive of financial market infrastructure services provider Euroclear.
In Europe, there is a growing willingness to look for opportunities outside the US, which can potentially lead to increased collaboration with Asia.
Meanwhile, Europe could also see a growing interest from Asian investors.
'At least in Europe, we are trying to defend the legal certainty, and to respect the rules,' Urbain said in an interview with The Business Times.
Euroclear offers settlement and asset servicing worldwide on securities transactions. These include domestic and international bonds, equities, derivatives and investment funds. Its assets under custody amounted to 40.7 trillion euros (S$59.1 trillion) as at end-2024.
Urbain noted that the company has seen 'tremendous' volumes of transactions in all directions since the US administration announced global tariffs.
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While many investors are maintaining a wait-and-see attitude during the 90-day pause, she expects there will be underlying structural changes, regardless of the outcome of negotiations.
'I believe that every country has started to realise that they were too dependent on too few countries, so there is this willingness for every country to reduce this dependency on very few partners,' she said.
Urbain was speaking on the sidelines of the launch of Euroclear's Singapore branch, which will replace its representative office in the Republic.
The branch – which was set up after Euroclear bagged a wholesale banking licence in Singapore in February 2025 – is part of the Belgium-headquartered company's strategy to expand in Asia, as it continues to see rising demand from the region.
'In the last three years, we're starting to see a lot more investment flows within Asian countries, and not necessarily with Europe in the middle,' she said. 'We also started seeing more investment flows between Asian markets and the Middle East.'
In 2024, Euroclear made various moves to strengthen its footprint in the region. It acquired a strategic stake in Singapore-based digital market infrastructure operator Marketnode. It also took part in an initiative by the Hong Kong Monetary Authority to create a tokenisation framework.
Urbain noted that the link between Europe and Asia goes both ways. For example, some 50 per cent of Euro bonds are issued in euros, with one-third bought by non-European investors, including those in Asia.
Meanwhile, Euroclear's links with domestic central securities depositories in Japan, Hong Kong and Singapore has also channelled Western investors into domestic securities.
On collateral services, Urbain said she has seen a lot of demand from institutional investors to use Asian securities as collateral to support their financing activity.
With its new wholesale banking licence in Singapore, the CEO said Euroclear will be able to expand its existing activities, such as in operations – a role that used to be handled out of its Hong Kong office.
The company is also looking to develop product management roles in Singapore so that it can create products which respond to local needs. Urbain noted that the Republic is unique for its position as a regional hub for asset management and wealth.
While Euroclear continues to mainly service the banks, that often involves working with the wealth or asset management divisions of these lenders, particularly for the company's growing funds business.
Even among international banks, their activities in Singapore are focused on wealth and asset management, Urbain said.
Meanwhile, there is also the unique Singapore Inc branding. She said: 'You do see a full ecosystem that is very intertwined and geared towards developing Singapore as a financial centre.'
Looking ahead, Euroclear will continue to develop links with local markets, including those in Indonesia, India and China, Urbain said. The CEO is also looking to further expand its funds business and develop Euroclear's Asian offices as a competent centre for mutual funds and the alternative funds.
Urbain also said the company's collateral management service, which is prominent in Europe, is not yet fully leveraged in Asia.
Meanwhile, she wants to support local players through partnership, which includes sharing its best practices and know-how to promote interoperability between Europe and Asia.
'Continuing to do what we do is fine, but I want to do more, because I want to make sure that we also service the flows which are within Asia,' Urbain said. 'But for that to be successful, we need to collaborate with local players.'