Contracts for differences broker Deriv has been granted a banking licence by the regulator in St Vincent and the Grenadines, a step Chief Executive Rakshit Choudhary said will let the firm handle client deposits and withdrawals through its own infrastructure rather than outside processors.
The licence was awarded to an entity separate from the broker's existing offshore entity on the island. Choudhary described the approval as "part of a broader push" to widen Deriv's jurisdictional reach globally.
"It opens up product ranges we don't currently offer," Choudhary said.
"Along with the thought of 'Deriv becomes a bank', it can also be seen as streamlining every step of the client's journey around deposits and withdrawals, and reducing our reliance on third parties so we can build smoother solutions directly for our clients," he added.
The approval had been anticipated. Finance Magnates reported earlier this year that the broker had applied for the licence.
Deriv's Wider Regulatory Footprint
Deriv holds licences in jurisdictions including Malta, Labuan in Malaysia, Vanuatu, the British Virgin Islands, Mauritius and the Cayman Islands. It also secured a full brokerage (Cat 1) licence from the regulator in Dubai and began onboarding traders under that permission last year.
The broker opened its second Cyprus office in late 2024. The Nicosia site operates as a technology development centre, with teams working on artificial intelligence, data analytics and software development. Deriv also established a physical presence in Mauritius earlier this year.
