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.