As part of the 10-year anniversary of the Federation for Recruitment in Luxembourg (FR2S), Glawdys Costant interviewed Phil Brown, CEO of Clearstream Banking, to discuss the evolution of Luxembourg’s financial ecosystem. From tokenization to digital talent and international competitiveness, the conversation explored how Luxembourg can strengthen its position as a global innovation hub in the years ahead.
How would you describe tokenization, and how will it transform finance in the coming years?
Tokenization can be described simply: you take a real-world asset, create a digital version of it, and allow that digital representation to be traded while the physical asset remains securely stored. The advantages are significant. A physical asset such as gold, for example, is difficult to transport. A tokenized version can be transferred instantly, securely, and efficiently.
For financial markets, this means faster ownership transfer, improved operational efficiency, and enhanced security. More importantly, tokenization changes the investor experience. The next generation of investors is accustomed to instant access: streaming music, watching content on demand, interacting digitally in real time. They increasingly expect that same immediacy in financial services. Tokenization enables a more dynamic and accessible investment environment, aligned with digital habits.
Is Luxembourg already a true innovation hub? What does it still need to strengthen its competitiveness?
Luxembourg has made substantial progress. The country has developed strong innovation ecosystems, notably through institutions such as the Luxembourg House of Financial Technology (LHoFT), which support startups and foster collaboration. Innovation thrives in clusters, and Luxembourg has understood that.
From a regulatory perspective, Luxembourg has also been proactive. It was an early adopter of digital securities legislation and has continuously updated its blockchain laws to reflect evolving market needs. Combined with a business-friendly but protective regulatory framework, these elements provide solid foundations.
The opportunity now is to consolidate that positioning. Other global tech hubs like London, Berlin, Silicon Valley… benefit from strong international branding. Luxembourg has the structural components; it must now amplify its visibility.
What concrete actions would accelerate Luxembourg’s international positioning?
Branding is central. While Luxembourg has a strong reputation within financial services, its global visibility remains limited. Young professionals often think first of New York, London, or Paris when planning their careers.
Yet Luxembourg offers a high quality of life, an exceptionally international environment, and proximity to decision-makers. These strengths are not sufficiently promoted internationally. Housing costs remain a structural challenge, particularly for early-career professionals. Addressing this issue more rapidly would significantly improve attractiveness.
Finally, Luxembourg must broaden its talent strategy. Historically focused on fund accounting and transfer agency expertise, it now needs to attract digital and technology specialists at scale.
How can Luxembourg attract and retain digital talent more effectively?
Early-career retention is critical. Experience shows that employees who stay beyond several years tend to remain long term. The challenge lies in the first years. Housing affordability is one factor, but career projection is equally important. Young digital professionals want clarity on their trajectory. What skills will they develop? What network will they build? Will Luxembourg strengthen their CV internationally?
Luxembourg must articulate clearer career pathways in fintech and digital finance.
Beyond career prospects, lifestyle advantages should be emphasized more strongly. Free public transport, a highly international population, safety, and quality of life are tangible benefits. These elements should be structured into a coherent and consistent international narrative.
Can Luxembourg be considered a true career accelerator?
Yes, particularly in financial services. Luxembourg experience in the funds industry is highly valued internationally. The proximity to regulatory authorities and government institutions also creates a unique professional dynamic that is harder to replicate in larger countries. The next step is to build similar recognition in digital finance and blockchain-related activities. That requires digital leadership, strong talent inflow, and visible success stories.
How urgent is the digital transformation race?
Speed is essential. Global competition is accelerating. Regulatory developments in the United States have significantly boosted stablecoin adoption, and the digital asset market is expanding rapidly. Europe must move decisively to remain competitive. Luxembourg has been proactive, but continued acceleration is necessary. In digital finance, delay translates into lost positioning.
If you had to describe your ideal future Luxembourg in one word, what would it be?
Interconnected. Luxembourg already operates as a global financial hub, connecting clients and markets across continents. The objective now is to extend that interconnected strength into digital finance and technology services. The infrastructure and expertise are present. The opportunity exists. Execution and speed will determine the outcome.