Deriv Applying for Banking License in St Vincent and the Grenadines

Deriv, the brokerage group best known for its forex and CFD trading platforms, has applied for a banking license in St Vincent and the Grenadines.

The application is reflected in data from the local Financial Services Authority (FSA), which lists an entity called “Deriv Bank” as pending approval for a banking license. Deriv already maintains a separate brokerage entity in the Caribbean jurisdiction, as is common among industry players.

St Vincent and the Grenadines currently hosts only two other internationally regulated banks: a local unit of Canadian banking giant RBC and a smaller firm, MPB Bank. Securing a banking license there would give Deriv direct access to deposit-taking and payment services that are often difficult for non-tier-1 regulated firms to obtain.

The push for in-house banking infrastructure is not unique to Deriv. Several proprietary trading firms and brokerages have recently acquired banking or Electronic Money Institution (EMI) licenses—often in Canada—to circumvent the high costs and compliance hurdles associated with European and other major jurisdictions. Deriv’s application suggests the group is pursuing a similar strategy to streamline its own payment operations.

No timeline for the license decision has been disclosed by the FSA or by Deriv.