DeutscheWertpapierService Bank (dwpbank) completed its purchase of Berlin-based fintechlemon.markets on September 30 after receiving clearance from Germany'sfinancial regulator, the companies said today (Wednesday)dwpbank ClosesLemon.markets AcquisitionThetransaction adds a digital brokerage platform to dwpbank's traditional custodyservices, allowing the combined entity to serve clients ranging fromestablished financial institutions to newer fintech players. dwpbank oversees€2.2 trillion in assets under custody and processes securities transactions forroughly two-thirds of German banks.lemon.marketsoperates an API-based platform that financial companies use to offer stock andETF trading to their customers. The Berlin firm holds a BaFin investmentlicense and counts fintechs includingPleo, Holvi, Optio and Tomorrow among its clients.Bothcompanies will keep their names and go-to-market operations separate whilecoordinating on technology development. dwpbank's existing WP3 platform handlescomplex custody requirements across multiple asset classes and trading venues,while lemon.markets focuses on streamlined services like fractional sharetrading and automated workflows."Thereis no such thing as a 'typical' securities customer, today's investor landscapeis highly heterogeneous," said Kristina Lindenbaum, executive board memberat dwpbank responsible for client and digital transformation. "It rangesfrom first-time investors who prefer a reduced scope of services toinstitutional investors with demanding requirements for their custody andinvesting experience."Theapproach mirrors a broader industry shift as traditional custodians attempt tocapture business from digital-first competitors that have gained ground withyounger investors and cost-conscious users. Neo-brokers have pressuredestablished players on pricing while introducing features like real-timesettlement that legacy systems struggle to match.Technology Push MeetsRegulatory Needsdwpbankmanages 5.3 million securities accounts and processed 53 million transactionslast year. The bank's clients include cooperative banks, private banks andsavings institutions across Germany's three-pillar banking system.lemon.marketsraised€28 million since its 2020 founding, including a €12 million round lastyear led by CommerzVentures. The company received its investment firm licensefrom BaFin in 2023, authorizing it to handle activities from contract brokingto portfolio management.Max Linden,founder and CEO of lemon.markets,said the company would maintain its pan-European focus. "Our focus remainson providing the leading Brokerage-as-a-Service platform for banks, assetmanagers and FinTechs," Linden said. "Together with dwpbank, we areactively shaping the securities market."The movecomes after the fintech last year partnered with major banks BNP Paribas andDeutsche Bank tolaunch its Brokerage-as-a-Service product.The dwpbankgroup now consists of the parent bank plus three subsidiaries: lemon.markets,dwp Service GmbH, and dwp Software Kft. dwpbank is classified as a systemicallyimportant institution under German banking regulations.Read other fintech-related stories by FinanceMagnates.comThis article was written by Damian Chmiel at www.financemagnates.com.