The settlement arm of the German stock exchange Deutsche Borse, Clearstream, is set to spend €15m on its Dublin operations.
Clearstream is one of Europe's biggest centres for the administration of alternative investments.
The investment has seen 15 people already hired by the company, and Clearstream said it has potential to create more than 100 new jobs over time.
It is moving to a new office and has signed up five funds for the service, which will process complex trades and settle deals in various asset classes.
Assets under management held in funds in Ireland are at €941bn.
Settlement happens after assets are traded when buyers and sellers each receive their part of the transaction.
Clearstream's new Dublin operations will target the after-trade operations of international hedge funds based in Ireland.
The Deutsche Borse is one of the largest exchange organisations in the world, and the Irish Stock Exchange uses its cash market trading technology Xetra.
''Clearstream selected Ireland for this investment as a result of the country's excellent reputation as a domicile and servicing centre for the hedge funds industry on top on the excellent talent pool for this particular industry,'' commented the company's chief executive Jeffrey Tessler.
IDA Ireland Chief Executive Barry O'Leary noted that Ireland has developed an excellent reputation globally as both a funds domicile and funds servicing centre, with over 40% of all global alternative investment funds serviced from Ireland.
''The establishment of Clearstream's investment fund services office in Dublin further reinforces Ireland's position within the global industry,'' he added.
Finance Minister Michael Noonan said that the financial services sector is a key driver of jobs in Ireland.
''I am delighted that Clearstream has taken the decision to establish an operation centre for servicing the investments into hedge funds in Dublin with the potential for more than 100 jobs,'' he added.
