WealthKernel Expands to Spain: A New Chapter in European Growth

We recently announced our new authorisation as a Securities Broker in Spain, marking a key milestone in our European expansion roadmap. This blog will walk you through our strategy, what this authorisation means and why we chose Spain as our launchpad for Europe.
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WealthKernel as a Securities Broker
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WealthKernel, as of May 2024, is regulated as a Securities Broker by the Spanish National Securities Market Commission (CNMV). With this, WealthKernel will soon be able to receive and transmit orders (RTO) and offer custody solutions across the EU.

We’re still getting officially registered by the CNMV, but once we’re done with the process,  we can start offering Euro-based trading and settlement services to our clients, providing full and fractional access to EU securities, ETFs, mutual funds and money market funds.

Our European Strategy

WealthKernel’s vision has always been firmly rooted in democratising access to finance, helping build better businesses and empowering everyday investors. Over the years, we have supported the build and launch of businesses like Stratiphy, Wahed Invest, Wealthyhood, Fint Invest, and more companies that aim to break barriers and reshape the investment landscape.

Barriers to wealth creation still exist within the EU, with many countries struggling with investing infrastructure that remains fragmented and inadequate despite a growing demand for digital investment solutions.

Now, with a regulated entity in Spain, WealthKernel aims to help break down those barriers and provide businesses with a single access point for investments across the continent. Our goal is to help businesses offer investment opportunities that are accessible, affordable, and open to everyone.
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Once fully registered with the CNMV, WealthKernel will be able to offer Spanish and European businesses -

• Access to US, EU, and UK shares, ETFs, mutual funds and money market funds 
• Fractional investing, enabling customers in Europe to invest from as little as €1
• Lower trading costs for businesses offering investments to their customers 
• Multicurrency investing, allowing customers to easily convert, invest and settle in EUR, GBP, or USD
• One secure API for user onboarding, accounts, trading and custody

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Why did we choose Spain? 

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Since announcing our authorisation, we’ve had a lot of interest in why we chose Spain as the first step in our European expansion. The decision was rooted in several reasons, including Spain’s rapidly evolving fintech landscape, regulatory environment and growing market potential. 

Spain is one of the fastest-growing ETF markets, and we see ETFs becoming the single biggest asset class in Europe over the next five years.  This is a huge opportunity for us to enable and support the distribution of ETFs across Europe. With our infrastructure supporting Euro-denominated ETF trading, settlement, and custody, we’re well-positioned to capitalise on this trend.

In addition, in 2021, the Spanish government created the Spain Entrepreneurial Strategy, which aimed at improving investment competitiveness and attracting talent to tech startups in Spain. This was followed by Spain’s Startup Law in January 2023, which aimed to encourage the creation and development of startups by giving certain benefits to startups and investors, such as a 15% tax rate reduction and a digital nomad visa.

Thanks to these initiatives, we believe that Spain’s regulatory ecosystem has become much friendlier to tech startups over the last few years with the help of the initiatives mentioned above. The Government still places extreme importance on having a strong compliance team and appropriate risk measures for customers’ safety.

Many consider the country the next European fintech powerhouse, with international fintechs choosing to open new intermediaries. In 2023, the Spanish tech ecosystem was worth €93B, up 3.6x since 2018, with around 80% of Spanish fintech concentrations in Barcelona, Madrid and Valencia. 

According to Fintech Global, Spanish fintechs have grown six-fold since 2015. Fintech Global reported that Spain has a 56% fintech adoption rate and is currently ranked 21st globally and seventh in Europe in consumer Fintech adoption. To top that, the B2C market is fairly mature in Spain with many foreign fintechs like Revolut but B2B is still growing, which makes it the perfect opportunity for WealthKernel. 

Spain has a tech-savvy population, global market access and a vibrant startup scene, all supporting WealthKernel’s roadmap and vision.
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Our Madrid Office 
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‍We’re setting up our new office in the heart of Madrid, where our team will drive our European operations. Stay tuned for more updates!

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