Nexo secures MiCAR compliance via 2 licensed German partners

Nexo reaffirmed compliance across the European Economic Area under the Markets in Crypto-Assets Regulation on July 28, using two licensed German partners — Tangany for custody and DLT Finance for brokerage — rather than a standalone CASP authorization.

"MiCAR is the most consequential regulatory framework digital assets have seen in Europe, and Nexo has been preparing for a long time," Yasen Yankov, chief product officer at Nexo, said. "When it came to choosing DLT Finance and Tangany, the standard was non-negotiable: our partners are best-in-class — rigorously regulated, technically sophisticated, and aligned with how we think about client protection."

Tangany, a Munich-based custodian licensed under MiCAR and regulated by BaFin, handles digital asset safekeeping for EEA clients. DLT Finance, operated by DLT Securities GmbH in Frankfurt and authorized under both MiCAR and MiFID II, provides brokerage infrastructure and acts as the trading counterparty for client trades. Nexo's earn rewards and crypto-backed loans sit outside those authorizations, offered under the platform's separate terms.

The partner-led model reflects a broader industry shift as MiCAR's transitional period closed July 1, giving national regulators authority to act against unlicensed providers. Of roughly 1,200 pre-MiCA registered virtual asset service providers across the bloc, only about 210 had received full CASP authorization as of May 2026 — a conversion rate below 18%, according to public registers tracked by ESMA and BaFin.

How the partnership model works

Nexo's structure splits regulated activities across two specialized firms rather than a single generalist provider. Tangany's MiCAR license covers custody, requiring client asset segregation and ongoing supervisory oversight under BaFin. DLT Finance's dual authorization under MiCAR and MiFID II subjects its brokerage operations to transaction monitoring, Travel Rule compliance, and governance standards comparable to traditional investment firms.

Nexo itself does not hold a MiCA CASP license in its own name as of mid-2026, based on public registers and the company's own client communications. It filed applications with Bulgaria's Financial Supervisory Commission in February 2026 and structured an entity under German regulatory oversight, both still listed as applications in progress rather than granted licenses.

Martin Kreitmair, chief executive officer of Tangany, described the arrangement as "a blueprint for institutions navigating the European market." Alan Kennedy, senior partnerships manager at DLT Finance, said the firm provides "the financial market infrastructure and execution capabilities needed to deliver a seamless user experience across multiple products."

What it means for the EEA market

Nexo ranks among the top three largest centralized crypto lenders globally as of the third quarter of 2025, according to the company, with more than $7 billion in client assets and over $430 billion processed since its 2018 launch. The platform operates in more than 199 jurisdictions.

The partner-led compliance route is a recognized path under MiCAR, and both Tangany's and DLT Finance's authorizations are recorded in BaFin's public register and the ESMA register of MiCAR-authorized providers. As enforcement deepens, platforms that secured compliant infrastructure early — through licensing, partnerships, or both — are likely to hold a competitive advantage over peers still navigating the authorization process.

This article is for informational purposes only and does not constitute investment advice.