French social trading app Shares has made history by becoming the first fintech in the country to obtain both crypto registration (PSAN) and a stock trading license as an investment company (PSI – Entreprise d’Investissement).
The company announced this exciting development after receiving confirmation from regulators late last week. CEO and co-founder Benjamin Chemla shared his enthusiasm, stating, “It’s been crazy. We’ve had 18 months of back and forth with different regulators, but the authorizations carry significant weight. We’re super happy and pumped to go live in Europe. I think we’re the very first fintech in France to receive these two approvals from the French regulator.”
Shares’ stock trading license includes asset custody, indicating that the company will manage users’ assets directly. The app’s crypto registration was approved in April, and Chemla noted that Shares is actively working on its full crypto license, which it aims to secure as soon as possible.
Chemla is optimistic about Shares’ future, emphasizing that their early crypto registration will facilitate a quicker application for their crypto license, positioning them favorably for broader European operations under the upcoming MiCA (Markets in Crypto-Assets) regulations set to take effect in 2026.
While the wait for the license was a frustrating development for Shares, which had hoped to launch in late 2022, Chemla believes that the extra time allowed for enhancements to their product suite, adding more functionalities and assets. “We’ll be the first platform offering US stocks, crypto, ETFs, and fractional shares all in one place,” he remarked.
One popular feature in the UK is the app’s ‘Premium Investor’ tool, allowing users to subscribe to the profiles and communities of experienced investors for a monthly fee of £2.99. This enables them to learn from and monitor the investment activity of seasoned investors, who receive a portion of the subscription fee for each follower they attract.
The service will be available by invitation only, with offers extended once or twice a year. Chemla explained this approach by saying, “We believe our product is premium. We are like Louis Vuitton, so we want to build the right community with the right people. As such, we invite people slowly to ensure a similar experience to what you can find within a Louis Vuitton store. This keeps it attractive and sought after.”
Since launching in the UK in May 2022, Shares has gained 150,000 members. Chemla is focused on replicating this success in France, aiming to become the leading player in the neo-brokerage sector within 18 to 24 months. He is confident that their UK/French heritage will enable them to leverage their experiences to excel in France while strengthening their UK market presence with new offerings.
To date, Shares has raised $90 million across three funding rounds, featuring investors such as Valar Ventures, Singular, Global Founders Capital, and Red Sea Ventures. Their strategic timing and business acumen allowed them to successfully conduct a $40 million Series C round in July 2022 before investor hesitance set in.
In November 2022, the company welcomed the Williams sisters as shareholders and brand ambassadors, while also launching beta testing for its crypto services across 11 European nations. Their marketing campaign featuring the sisters is set to debut in the UK and France later this year.
The company has lifted its hiring freeze and is currently pursuing targeted recruitment for specific roles across Europe.