<\/p>\n
Luxembourg consolidated its position as the world\u2019s leading cross-border investment hub in 2025, with assets under management in Luxembourg-domiciled funds surpassing \u20ac8 trillion for the first time, standing at \u20ac8.2 trillion at the end of the year.<\/p>\n
This reflects the structural depth and international reach of the jurisdiction, which continues to act as a key point in connecting global capital to cross-border investment opportunities in an increasingly complex geopolitical and economic environment.<\/p>\n
Over the past five years, assets in Luxembourg-domiciled funds have grown by more than 50%, reflecting sustained international demand for the country\u2019s expertise and unsurpassed international distribution network. The growth has been broad-based, spanning both UCITS and alternative investment funds, with alternatives now accounting for 35% of total assets.<\/p>\n
\u201cGrowth across Luxembourg\u2019s financial centre has been broad-based, spanning funds, insurance, capital markets and digital finance,\u201d said Tom Th\u00e9obald, CEO of Luxembourg for Finance. \u201cThis reflects the continued diversification of the ecosystem and its ability to support a wide range of financial activities.\u201d<\/p>\n
UCITS funds recorded growth of 8.5% over the year, with UCITS ETFs reaching over half a trillion euros in assets for the first time. By the end of December, ETF assets stood at \u20ac531.8 billion, illustrating the continued expansion of the European ETF market leveraging Luxembourg\u2019s fund ecosystem, which is highly diversified, both in terms of the origin of fund promoters as well as in terms of asset classes.<\/p>\n
Luxembourg also remains the leading domicile for European Long-Term Investment Funds (ELTIFs). At the end of 2025, 150 of the 272 ELTIFs established in the EU were domiciled in Luxembourg. When considering ELTIFs distributed on a genuine cross-border basis, Luxembourg accounts for 77% of the total, underlining its role in structuring long-term investment vehicles for international investors.<\/p>\n
The broader financial ecosystem continued to grow throughout the year, with Luxembourg\u2019s financial supervisors authorising more than 58 new entities, reinforcing the centre\u2019s diversification across banking, asset management, payments, insurance, and digital finance.<\/p>\n
New entrants included three banks \u2013 Cecabank, Fundbank and Rothschild & Co Wealth Management \u2013 alongside four Crypto Asset Service Providers (CASPs): Coinbase, Bitstamp, Zodia Custody, and Clearstream.<\/p>\n
In 2025, Alipay was licensed as an Electronic Money Token issuer, while dtcpay and Ripple were authorised as Electronic Money Institutions. Additional approvals included a payment institution, four specialised PSFs (Professionals of the Financial Sector) and three support PSFs, two authorised AIFMs, 36 registered AIFMs, and a new Chapter 15 ManCo (Management Company) and Chapter 16 ManCo. Three new reinsurers also established operations in Luxembourg, further strengthening the insurance landscape.<\/p>\n
Beyond traditional financial activities, Luxembourg\u2019s digital finance ecosystem also continued to evolve. The authorisation of CASPs (Crypto Asset Service Providers), EMIs (Electronic Money Institutions) and EMT (Electronic Money Token) issuers reflects the increasing convergence of digital assets, modern payment infrastructure, and established financial institutions.<\/p>\n
\u201cBuilding on longstanding expertise in fund servicing, custody, capital markets, and international cross-border distribution, Luxembourg is continuing to integrate digital finance into its broader institutional architecture,\u201d notes Th\u00e9obald. \u201cThis approach combines innovation with regulatory certainty, positioning the jurisdiction as a stable and internationally oriented environment for evolving financial services.\u201d<\/p>\n
The insurance sector recorded another strong year. Life insurance premiums reached a record \u20ac31.1 billion, representing growth of 16.2% compared to the prior year, which was already a record year. Unit-linked products were the primary driver, increasing by 30.3%, while guaranteed products continued to expand as well. Non-life premiums totalled \u20ac19.8 billion.<\/p>\n
Luxembourg also strengthened its global leadership in sustainable finance and international debt markets. By year-end, more than 2,400 Green, Social, Sustainable and Sustainability-Linked bonds were listed on the Luxembourg Green Exchange (LGX), 43% of the total global market share, with over \u20ac1.3 trillion issued via LGX securities.<\/p>\n
Moreover, the Luxembourg Stock Exchange surpassed 50,000 listings, reinforcing its position as the world\u2019s leading venue for international debt securities \u2013 every third new bond issuance globally is listed in Luxembourg.<\/p>\n
\u201cLuxembourg\u2019s continued development reflects the strength of its international model,\u201d continues Th\u00e9obald. \u201cThe country\u2019s regulatory expertise and stability, cross-border experience and openness to innovation, as well as the government\u2019s strong competitiveness agenda, ensures that it stands to gain from the renewed focus on Europe by global asset allocators.\u201d<\/p>\n
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