Berlin-based neobroker, Trade Republic, has received a full banking licence from the European Central Bank (ECB), enabling an extended scope of financial services.
This significant development allows Trade Republic, previously reliant on banking partners like Solaris AE, Deutsche Bank AG, JP Morgan SE, and Citibank Europe plc to manage customer funds, to now independently handle customer deposits and delve into creating a lending business.
Having last been valued at $5.3bn during its substantial funding round in 2021, Trade Republic boasts an impressive roster of international venture capital backers, including Sequoia, Accel, TCV, and Peter Thiel’s Founders Fund.
Presently, Trade Republic offers a spectrum of trading and savings products, including commission-free trading options for retail investors, a monthly ETF savings plan through a strategic partnership with BlackRock.
Christian Heckler, co-founder of Trade Republic said, “The full banking license opens up a new chapter for Trade Republic. Most of our customers are still in the early stages of their financial journey. The full banking license empowers us to support them over the next decades. Together with our customers, we strive to grow further and build one of the leading financial institutions.”
The German firm has significantly expanded its offering in 2023, passing 4% interest rates on cash, opening up bond trading for retail investors, and launching a new app.
“The new products enabled us to significantly grab market share in Germany and internationally in 2023. By obtaining a full banking license, we are accelerating this journey. The focus remains on the easy, fast and affordable accumulation of wealth for everyone,” Heckler said.
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