UniCredit has acquired a minority stake in German FinTech VC Trade as part of its strategy to modernise capital markets infrastructure and expand digital debt financing services across Europe.

The Italian lender said its investment in the Frankfurt-based company includes an option for it to increase its shareholding over time. The exact size of the investment was not disclosed.

UniCredit said the deal will support VC Trade's international expansion while enhancing its own ability to provide more efficient digital debt financing solutions to corporate clients.

Founded in 2016, VC Trade operates a digital marketplace and infrastructure platform for debt transactions, covering syndicated loans and other debt instruments.

VC Trade also offers Schuldschein, which are specialised loan agreements governed by German law. UniCredit said it is currently the leading marketplace in the German Schuldschein market by both transaction volume and number of deals.

The platform digitises workflows across the debt transaction lifecycle, which it says helps to reduce execution complexity and improve the efficiency of raising and distributing debt capital.

UniCredit said the investment reinforces its commitment to innovation in Germany, one of its core markets, while supporting the rollout of VC Trade's services across the bank's wider European footprint.

The deal also expands UniCredit's digital financing ecosystem, with the bank aiming to strengthen market connectivity and improve access to capital markets by reducing friction in debt issuance and distribution processes.

Sam Kendall, head of Advisory & Financing Solutions at UniCredit, said: ”The challenge facing European capital markets is not a shortage of capital. It is the cost of connecting capital with the companies and projects that can put it to productive use, particularly in the mid-market and SME segments.

“Reducing this cost to serve is at the heart of our UniCredit Unlimited strategy and VC Trade has built impressive technology that addresses the challenge directly.”

The acquisition follows a series of digital finance investments by UniCredit, including its purchase of a 16 per cent stake in blockchain financing specialist BlockInvest, the launch of its AI-powered M&A platform DealSync for SMEs, and the issuance of Italy's first tokenised mini-bond.

It also further solidifies UniCredit’s position in the German market as it moves towards an acquisition of major German bank Commerzbank.

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