European Merchant Bank (EMBank) has entered into a strategic partnership with the Lithuanian fintech company Axiology. The objective is to streamline the bond issuance process and diversify financing options for small and medium-sized enterprises (SMEs) in Lithuania. This collaboration combines EMBank’s banking expertise with Axiology’s newly licensed, DLT (Distributed Ledger Technology) based infrastructure, providing clients with access to cutting-edge capital market solutions.
Axiology has recently been granted a licence under the European Union’s DLT Pilot Regime, authorising it to operate a combined trading and settlement system (DLT TSS) for capital markets. This regulatory milestone will enable the company to offer end-to-end digital bond infrastructure with reduced complexity and up to 40% lower costs, representing a significant step forward in democratising access to capital markets for SMEs.
Through the partnership, EMBank will be able to support clients in issuing digital bonds via a fully integrated process that reduces friction, improves transparency and provides cost advantages. Axiology’s infrastructure is built on a permissioned version of the XRP Ledger and has been tested in collaboration with central banks, including those of Georgia and Colombia, as well as in European Central Bank settlement trials.
“This partnership with Axiology will create new opportunities for our clients, particularly small and medium-sized enterprises, as well as non bank financial institutions to utilize modern methods of raising capital and have better access to financing,” says Sarp Demiray, CEO of EMBank. “Our aim is to support business growth by providing access to innovative and modern finance solutions that ensure efficiency, flexibility and transparency alongside traditional financing. As a bank whose motto is ‘Digital Banking with a Human Touch’, our primary focus is on creating direct value to businesses of our clients and our ultimate aim is providing them additional competitive advantage in the market by providing new solutions to their own clients through partnerships through reputable partners such as the one we just launched with Axiology.”
Axiology, led by former Bank of Lithuania board member Marius Jurgilas, is an innovative fintech company implementing next-generation infrastructure solutions for the European capital markets.
This partnership shows how EMBank is working to help small businesses grow and make it easier for them to access financial services. EMBank is working with industry leaders like Axiology to improve its services and make it easier for businesses to raise money digitally.
“We are pleased to partner with European Merchant Bank to enable a more inclusive and efficient bond issuance ecosystem,” says Marius Jurgilas, Founder and CEO of Axiology. “Together, we’re building infrastructure that empowers both banks and their clients to access capital markets digitally and securely.”
