Passfolio is a fully disclosed introducing broker to its clearing firm Drivewealth. We do not hold any of our users' assets. Instead, they are all held by DriveWealth in street name. The term “street name” means that securities are registered in DriveWealth’s name, rather than the name of the user who bought it and is the legal owner of the security.
The user, though, is still the actual owner and beneficiary and has all the rights associated with the assets. This is a common practice in the industry because of the complexity of tracking each share certificate for each individual.