- Trade Republic becomes one of the largest custodians in Europe, covering the whole brokerage business chain, replacing HSBC as intermediate custodian.
- Expansion of infrastructure sets new standards in terms of efficiency and automation, allowing for faster localisation and product development for Trade Republics customers.
- Europe’s leading savings platform invests tens of millions in building its own platform for securities settlement.
- Paving the way to combine the leading banking and brokerage product with the best customer experience and service in the coming years.
Trade Republic reaches its next milestone as a full bank, taking over securities settlement itself from June 2024 onwards. Trade Republic invests a tens of millions in the new settlement platform and the expansion of its own banking infrastructure. The infrastructure, which has been built completely internally over two years, enables Trade Republic to offer all custody services such as corporate actions and dividends inhouse. Customers throughout Europe will benefit from simpler processes and attractive new products, which the company can now develop faster and without partner dependencies, paving the way for further strong growth and best in class customer experience and service.
Christian Hecker, co-founder of Trade Republic
“Building our own custody business to own the whole brokerage business chain is a major step towards freeing ourselves from partner dependencies and developing new products for our customers quicker. We will benefit from this above all in the localization of our products across Europe”, says Christian Hecker, co-founder of Trade Republic. “We will be the first broker in Europe to be tax-easy in the major European markets.”
Until now, securities settlement, i.e. the formal process from the initiation of a trade over to the transfer and payment of the securities, was handled by the HSBC subsidiary HTNG as an intermediate custodian. With its own new custody infrastructure, Trade Republic is linking up directly with the central securities depository Clearstream. Securities purchases by new customers have increasingly been processed directly by Trade Republic since the beginning of the year. The migration of the existing customer base of several million customers was completed within one weekend.
The internalization of the securities business has been one of Trade Republics largest projects and is part of the overall strategy to build one of the most modern and efficient banking platforms in Europe. Trade Republic invests a tens of millions in building its own custody and banking infrastructure to combine the leading banking and brokerage product with the best customer experience and service in the coming years. With the further development of its own operational banking processes, Trade Republic is also positioning itself for further strong growth throughout Europe.
