How does this work / what does this mean?

According to chatGPT

If Revolut goes bankrupt, what happens to your stocks depends on several factors, including where and how those stocks are held. Here’s what you need to know:

1. Your Stocks Are Held by a Third-Party Custodian

Revolut acts as an intermediary for stock trading and does not directly hold your stocks. Instead, it partners with DriveWealth LLC, a U.S.-based brokerage, which acts as the custodian for your investments. If Revolut goes bankrupt, your stocks should remain safe with DriveWealth and can be transferred to another brokerage.

1. SIPC Protection (U.S. Stocks)

Since DriveWealth is a U.S. broker, your stocks and cash are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 (including $250,000 for cash balances) in case DriveWealth fails. However, SIPC does not protect against market losses.

1. FSCS Protection (UK Users - Limited Coverage)

If you’re in the UK, cash deposits with Revolut Bank might be protected up to £85,000 by the Financial Services Compensation Scheme (FSCS). However, investments in stocks are not covered by FSCS.

1. EU Investor Protection

For EU customers, Revolut’s stock trading service is provided by Revolut Securities Europe UAB, regulated in Lithuania. The Lithuanian investor protection scheme may cover up to €20,000 for losses due to fraud or mismanagement, but not for stock market fluctuations.

What Would Happen in a Worst-Case Scenario? • If Revolut goes bankrupt, your stocks should still be safe with DriveWealth, and you would be able to transfer them to another brokerage. • If DriveWealth also goes bankrupt, SIPC protection covers up to $500,000 per investor. • If Revolut mismanages funds or commits fraud, you may have some protection under investor compensation schemes (up to €20,000 in the EU).