The Bank of London has applied for a banking licence in the European Union and said it will create 300 new jobs in Luxembourg.
The clearing bank said the roles will be in management, compliance, technology and operations in Luxembourg. They come as part of a €200m (£171.3m) investment into the country.
“This is a major milestone for our business and follows the foundation established in the UK,” said Norbert Becker, chairperson of the EU region for The Bank of London.
“Luxembourg is perfectly positioned to play a key role in driving the bank’s European business forward, and ensuring Luxembourg is the centre of clearing for the EU.”
The Bank of London is a clearing bank, which means it is not a typical bank where you can open a current account. It has built the underlying technology for banks to run on. Its customers include banks, clearing houses and fintech companies.
The clearing bank was one of those that submitted a rescue bid for the UK subsidiary of Silicon Valley Bank in the wake of its collapse. SVB UK was eventually acquired by HSBC.
Anthony Watson, CEO and founder, The Bank of London, said: “Luxembourg is the logical choice for us to build out our offering across the EU, and marks the latest step in our international growth strategy and follows the successful rollout of our banking solutions across the UK.”
The Bank of London added to its funding reserves earlier this year, picking up £33m in a Series C add-on round.
Outside of the fintech’s headquarters in London, it has bases in Belfast, New York and Charlotte.
British competitors in the clearing bank space include ClearBank.
Ex-ClearBank CFO Marc Jenkins joined The Bank of London’s executive team in the same position in December.