Deutsche WertpapierService Bank (dwpbank) completed its purchase of Berlin-based fintech lemon.markets on September 30 after receiving clearance from Germany's financial regulator, the companies said today (Wednesday)

dwpbank Closes lemon.markets Acquisition

The transaction adds a digital brokerage platform to dwpbank's traditional custody services, allowing the combined entity to serve clients ranging from established financial institutions to newer fintech players. dwpbank oversees €2.2 trillion in assets under custody and processes securities transactions for roughly two-thirds of German banks.

lemon.markets operates an API-based platform that financial companies use to offer stock and ETF trading to their customers. The Berlin firm holds a BaFin investment license and counts fintechs including Pleo, Holvi, Optio and Tomorrow among its clients.

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Both companies will keep their names and go-to-market operations separate while coordinating on technology development. dwpbank's existing WP3 platform handles complex custody requirements across multiple asset classes and trading venues, while lemon.markets focuses on streamlined services like fractional share trading and automated workflows.

“There is no such thing as a ‘typical’ securities customer, today's investor landscape is highly heterogeneous,” said Kristina Lindenbaum, executive board member at dwpbank responsible for client and digital transformation. “It ranges from first-time investors who prefer a reduced scope of services to institutional investors with demanding requirements for their custody and investing experience.”

The approach mirrors a broader industry shift as traditional custodians attempt to capture business from digital-first competitors that have gained ground with younger investors and cost-conscious users. Neo-brokers have pressured established players on pricing while introducing features like real-time settlement that legacy systems struggle to match.

Technology Push Meets Regulatory Needs

dwpbank manages 5.3 million securities accounts and processed 53 million transactions last year. The bank's clients include cooperative banks, private banks and savings institutions across Germany's three-pillar banking system.

lemon.markets raised €28 million since its 2020 founding, including a €12 million round last year led by CommerzVentures. The company received its investment firm license from BaFin in 2023, authorizing it to handle activities from contract broking to portfolio management.

Max Linden, founder and CEO of lemon.markets, said the company would maintain its pan-European focus. “Our focus remains on providing the leading Brokerage-as-a-Service platform for banks, asset managers and FinTechs,” Linden said. “Together with dwpbank, we are actively shaping the securities market.”

The move comes after the fintech last year partnered with major banks BNP Paribas and Deutsche Bank to launch its Brokerage-as-a-Service product.

The dwpbank group now consists of the parent bank plus three subsidiaries: lemon.markets, dwp Service GmbH, and dwp Software Kft. dwpbank is classified as a systemically important institution under German banking regulations.