Modulr is required by law to use a process called Safeguarding to protect customer money. This means they ensure that 100% of the funds they receive in exchange for e-money are safeguarded on receipt, meaning that these are segregated from all other funds that they hold and they cannot be used for any other purposes.
This is completely separate from the additional funds that Modulr holds to meet its corporate obligations and run its business. 100% of the funds they safeguard must be held in specially designated client accounts at credit institutions (banks) or the Bank of England.