TransferWise has secured approval from the FCA to offer investment services to customers of its borderless bank account.
The Financial Conduct Authority has granted the money transfer unicorn multiple permissions to carry out regulated investment activities, including the ability to arrange and bring about deals in investments.
Initially, TransferWise will enable customers to invest from multiple currency balances into "simple, affordable funds from reputable providers", giving users the opportunity to enjoy a return on the free float held in their accounts.
The firm is due to launch its first feature under the licence in the next 12 months.
The TransferWise multi-currency account - aimed at expats and country-hopping travelers - has issued one million Mastercard debit cards since launch in 2018 and holds £2 billion in current deposits.
Kristo Käärmann, CEO and co-founder, TransferWise says: “Traditional bank accounts only work properly in one country, with one currency. TransferWise is evolving from being a pure payments provider, to the number one alternative for the banking needs of those living and working between countries. With £2 billion in deposits we know that people want to hold their money with TransferWise, so we’re very happy to soon provide a way to make a return on that money.”