DWP Bank purchases Lemon Markets with ambition to broaden digital securities offerings
The Deutsche WertpapierService Bank (DWP Bank) is set to complete its acquisition of the Berlin-based fintech company lemon.markets by autumn 2025, subject to regulatory approval from BaFin. This move aims to accelerate DWP Bank's digital transformation in securities services by integrating lemon.markets’ scalable brokerage-as-a-service platform with DWP Bank’s traditional infrastructure.
The acquisition is expected to modernize securities trading by improving trade execution efficiency, digital accessibility, and investment management across multiple markets. Lemon Markets' modular platform will provide flexibility and faster deployment of digital brokerage solutions, enabling DWP Bank to offer enhanced, competitive services in securities custody and trading.
Lemon Markets, a licensed securities institution with BaFin, supports technologically advanced features such as fractional trading, real-time processing, and digital settlement for ETFs, stocks, and funds. The company also provides an API-based, cloud-native platform for institutional clients to integrate standardized brokerage services.
DWP Bank, a central infrastructure provider in the German securities market with over 1,000 connected institutions from all three banking sectors, processes over 53 million securities transactions annually for more than 5.3 million accounts. The assets under custody at DWP Bank amounted to around €2.2 trillion in 2024.
With the acquisition, DWP Bank is expanding its technology stack, which includes the central securities platform WP3 and the digital asset solution wpNex. Both platforms will be technically interconnected to enable combined services in custody, clearing, and brokerage.
The market environment for the acquisition is characterized by intense competition, rapid technological change, and increasing regulatory requirements for securities services. Lemon Markets complements DWP Bank's structure with technical flexibility and API-centered product development.
The neobrokerage services will be offered as part of a modular service spectrum using Lemon Markets' infrastructure. Lemon Markets has clients such as Tomorrow, Optio, or Holvi. The combination of custody and digital brokerage within a regulated framework could be a practical alternative to in-house operation for many institutions.
Max Linden, Founder and CEO of Lemon Markets, states that the company's collaboration with DWP Bank is a signal of strength to existing and future partners and customers. This acquisition could significantly impact the securities trading landscape through improved technology and broader service offerings, potentially paving the way for digital asset services.
The collaboration between DWP Bank and Lemon Markets, following the scheduled acquisition, will integrate cutting-edge technology into DWP Bank's existing finance and business operations, aiming to transform securities trading through enhanced security, efficiency, and investment management. With Lemon Markets' technology-driven financial services, DWP Bank will offer more competitive securities custody and trading solutions to clients, leveraging advanced features such as API-based brokerage, real-time processing, and digital settlement.
