DWP Bank takes over Lemon Markets in a move meant to broaden digital securities offerings.
Deutsche WertpapierService Bank (dwpbank) has announced the acquisition of Lemon Markets, a Berlin-based fintech company, in a move aimed at accelerating its digital transformation and expanding its full-custody services. The acquisition, which is subject to regulatory approval from BaFin and other market-related closing conditions, is expected to be finalized by autumn 2025.
Founded in 2020, Lemon Markets offers a Brokerage-as-a-Service (BaaS) platform that provides digital brokerage and custody infrastructure, enabling companies to integrate investment products into their offerings. The acquisition will see Lemon Markets continue to operate as a separate brand under dwpbank's two-brand strategy, combining the traditional securities expertise of dwpbank with Lemon Markets' innovative fintech platform.
Post-acquisition, Lemon Markets will bring technological flexibility and API-centered product development to dwpbank. Key plans for the neobrokerage platform include leveraging Lemon Markets' API-based infrastructure that supports fractional trading, real-time processing, and fully digital workflows for ETFs, stocks, and funds. This integration with dwpbank's existing cloud-based technology stack, including the WP3 securities platform and the wpNex digital asset solution, aims to create a modern, accessible securities ecosystem that enhances operational efficiency and market access.
The acquisition positions dwpbank to compete more effectively in the evolving capital markets by combining stability and regulatory expertise with agility and fintech innovation. This will help clients quickly adapt to market shifts and attract new customer segments in the securities business.
Max Linden, Founder and CEO of Lemon Markets, stated that the collaboration with dwpbank will provide a strong signal to existing and future partners and customers. He believes that the combination of custody and digital brokerage within a regulated framework could be a practical alternative to in-house operation for many institutions.
The market environment for the acquisition is characterized by intense competitive pressure and technological change, with neobrokers and digital direct providers gaining market share and traditional institutions facing significant adaptation pressure. Lemon Markets, registered as a licensed securities institution with BaFin, has companies such as Tomorrow, Optio, or Holvi among its customers. Its goal is to provide capital market access as a standardized infrastructure component, an approach that is increasingly establishing itself in the financial industry, especially in the context of embedded finance models.
DWP Bank processes over 53 million securities transactions annually for more than 5.3 million accounts and has assets under custody amounting to around 2.2 trillion euros in 2024. As a central infrastructure in the German securities market, with over 1,000 connected institutions from all three banking sectors, dwpbank is well-positioned to leverage Lemon Markets' technology to broaden its service portfolio and offer banks, fintechs, and asset managers a flexible mix of custody and brokerage services tailored to diverse client needs.
In summary, the acquisition of Lemon Markets by dwpbank is a strategic move that will enhance the bank's digital capabilities, expand its offerings with a digital neobrokerage platform, and position it to compete more effectively in the evolving capital markets. The close integration of the two platforms is aimed at shortening development cycles and targeting customer groups, creating a modern, accessible securities ecosystem that enhances operational efficiency and market access.
- The acquisition of Lemon Markets by dwpbank, a deal that bridges the gap between traditional finance and technology, will bring technological flexibility and API-centered product development to dwpbank, allowing them to offer a flexible mix of custody and brokerage services tailored to diverse client needs.
- Post-acquisition, Lemon Markets will contribute to dwpbank's competitive edge in the evolving capital markets by providing digital brokerage and custody infrastructure, enabling them to expand their full-custody services and offer a modern, accessible securities ecosystem that enhances operational efficiency and market access.
