spring 2026 FINTECH Luxembourg’s fintech ecosystem has evolved “fantas- tically well” over the last decade, says Nasir Zubairi, CEO of the Luxembourg House of Financial Technol- ogy (LHoFT) since 2016. “Over the past 10 years, we’ve created a new industry for Luxembourg.” The country’s fintech map today is dominated by B2B activities, with regtech, fundtech and tokenisation companies in Luxembourg providing a bevy of innova- tive solutions to financial institutions. Fintech firms ad- dress challenges related to back-office, regulatory com- pliance, onboarding, and anti-money laundering and know- your-client (AML/KYC) requirements. These problems are not limited to Luxembourg. “The cost of compliance for financial institutions in Europe has risen significantly since the financial crisis,” Mr Zubairi points out. A survey conducted by EY and the Luxembourg Bankers’ Association (ABBL) among Lux- embourg’s banking sector and published last December found that regulatory investment costs accounted for a staggering 41% of total investment expenditures, mak- ing regtechs increasingly important. But Luxembourg is also the “clear market leader” in the EU when it comes to the payments vertical. PayPal set up its European headquarters in Luxembourg in 2007, and the Grand Duchy continues to attract players in the sector. One of the most recent is the Indian pay- ments solution provider Paytm, which in January 2026 set up a subsidiary in Luxembourg. Mr Zubairi will step down from the LHoFT later this year to take up the posi- tion of CEO of Paytm Europe Luxembourg. Luxembourg has focused on its comparative advan- tages, how it wanted to position fintech, and the oppor- tunities in the Grand Duchy, explains Mr Zubairi. “We set forth to build a sector where you combine the ad- vantages you get with technology companies with the challenges that financial institutions have to create an overarching, strong and robust finance sector that is ready for the future. And that’s what happened.” Proximity, language, cooperation “One of the core strengths of Luxembourg is the proxim- ity of the ecosystem and the access to decision-makers in the traditional finance sector,” says Mr Zubairi. “Added to that is our fluency in English across all sec- tors and the entire value chain of financial services.” Being able to interact with the regulator in English, he adds, as well as the international competencies of financial sector support services like lawyers, are key. The possibility to discuss legal texts and submit con- tracts in English is a major draw for international busi- nesses looking to expand into Europe. An “element of cooperation” has also been critical for Luxembourg’s success, says Mr Zubairi. “We can put people around a table, who may be competitors in some ways, but who can work together to come up with ideas, solutions and overcome challenges.” What Luxembourg offers The LHoFT itself is another key argument to bring fin- techs to Luxembourg. Its physical facility, which pro- vides a “home away from home” for fintech companies that are getting started, also offers people the oppor- tunity to meet a community with similar interests. It facilitates access to customers, connectivity to capital, links to the media and its networks in other countries. Finally, Luxembourg’s financial regulator, the Financial Sector Supervisory Commission (CSSF), is what Mr Zubairi describes as the “cherry on the cake.” The CSSF’s “consultative” nature is viewed positive- ly by financial firms, with the regulator maintain- ing high standards and commanding respect on the global stage. To promote dialogue with the market, its Innovation Hub allows anybody who wants to present an innovative project or discuss challenges related to fi- nancial innovation in Luxembourg to get in touch. Looking ahead, Mr Zubairi expects Luxembourg’s fintech ecosystem to “continue to thrive and grow. We’re the best place in the EU, I believe, and I’ve lived in and seen plenty of places. We’re nurturing, we’re supportive and the opportunities here are huge. I can only imagine it’s going to go from strength to strength.” Luxembourg is renowned for its strong fintech and regtech ecosystem, built on close ties between finance and technology. Today, the coun - try is also emerging as a European hub for digital assets, attracting major international players. Here are some key companies shaping this fast-growing sector: The US cryptocurrency exchange Coinbase sets up its European hub in Luxembourg Robinhood, an investing and trading app, acquires the Luxem- bourg-based crypto exchange Bitstamp Global financial services provider Apex Group acquires the Luxem- bourg fintech startup Tokeny The British bank Standard Chartered obtains a licence in Luxembourg to offer digital asset custody services