Deutsche WertpapierService Bank (dwpbank) has agreed to acquire Lemon.markets, a Berlin-based brokerage-as-a-service platform founded in 2020, as announced in a press release. The fintech offers digital brokerage and custody infrastructure that enables companies to integrate investment products into their offerings.
In 2023, Lemon.markets obtained an investment firm licence from Germany’s financial regulator BaFin. This allows it to operate across a wide range of activities, including contract broking, investment advice, portfolio management, proprietary trading, and custody.
Embedded investing
The company attracted €12 million in funding last year in a round led by CommerzVentures, taking its total capital raised to €28 million. Over its four years in operation, Lemon.markets has positioned itself as a technology provider for embedded investing.
Following the acquisition, Lemon.markets will continue to operate under its own brand alongside dwpbank, which provides securities services to financial institutions across Germany. Both platforms will work together, pursuing a two-brand strategy while developing their respective infrastructures.
Broader service range
Dwpbank says the combination will expand its service portfolio, enabling banks, fintechs, and asset managers to access both full custody solutions and flexible brokerage-as-a-service offerings. The aim is to allow clients to mix and match services to suit their customer base.
For dwpbank, the move adds a technology-driven brokerage capability to its traditional securities services business. For Lemon.markets, joining a large-scale infrastructure provider opens up access to established distribution channels in the German financial market.
