The US-based
Brokerage-as-a-Service technology company DriveWealth has secured a brokerage
license from the Bank of Lithuania, expanding its global operations into the
European Economic Area.
DriveWealth Secures
European Brokerage License, Establishes Lithuanian Hub
The category
B financial license enables DriveWealth to establish its European headquarters
in the Lithuanian capital, Vilnius, adding to its existing regulatory presence
in the United States and Singapore. The new entity, operating as DriveWealth
Europe, will serve as the company’s base for the operations on the Old
Continent.
“Achieving
this license from the Bank of Lithuania marks a pivotal milestone in our global
expansion strategy,” said Michael Blaugrund, CEO, at DriveWealth. “Lithuania’s
commitment to innovation made it the best fit for setting up our European hub.
We look forward to working with the Bank of Lithuania and leveraging the
support of their financial ecosystem to offer DriveWealth’s platform to a
broader clientele.”
The
company’s platform, which enables fractional share trading, has gained some traction
recently through partnerships with digital wallets, broker-dealers, and
consumer brands globally. The Lithuanian license will allow DriveWealth to
further develop its presence in Europe and introduce market-specific products.
According
to the release, the European entity will work together with Invest Lithuania,
the domestic agency that aims to promote foreign investments in the country,
working closely with the Bank of Lithuania.
“DriveWealth’s
decision to establish their European hub in Vilnius further strengthens
Lithuania’s position as a leading fintech destination in Europe,” states
Elijus Čivilis, General Manager at Invest Lithuania. “This move not only
validates our efforts to create a nurturing environment for financial
innovation but also highlights the caliber of our talent pool and regulatory
framework.”
Earlier this year, DriveWealth partnered with Blue Ocean Technologies to expand equities trading services. This collaboration aims to provide investors with extended access to trading services and market data, especially in the Asia-Pacific region and other global markets.
A few months ago, the UK’s Bud, a financial data intelligence platform, also expanded to Lithuania after receiving an AIS Provider license.
Lithuania Attracts Financial Sector Companies
The Invest Lithuania report, “Fintech Landscape,” notes that by the end of 2023, Lithuania hosted 276 fintech firms, marking a steady rise from only 55 in 2014. Among the early entrants into this market is the UK-based neobank Revolut.
Lithuania has excelled in attracting blockchain and cryptocurrency-focused companies, with the proportion of these firms increasing from 8% in 2022 to 13% in 2023. One such firm is the crypto bank Meld, which recently secured a virtual asset service provider license and launched tokenized real-world asset (RWA) services in March. The market has also welcomed Bitget, a crypto exchange that has concentrated its recent expansion efforts on Europe.
This article was written by Damian Chmiel at www.financemagnates.com.
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