This paper investigates the determinants and impact of the co-evolution between the international financial markets and the offshore financial centre Luxembourg since the late 1950s. It argues for a historic understanding of decisive, time-sensitive environments that helped Luxembourg to emerge, transform and upgrade over time. This paper links explanations like the shaping power of international political decisions, ‘historical accidents’ and national key actors’ visionary intentionality and professional networks that have resulted in the creation of a specific developmental path in finance and the rapid internationalisation and sophistication of its financial eco-system.