BitGo Europe obtained an extended license from Germany’s BaFin, enabling regulated crypto trading services for institutional clients across the EU.

The Event in Detail

BitGo Europe GmbH, a subsidiary of BitGo, has received an extension of its Markets in Crypto-Assets Regulation (MiCA) license from Germany's Federal Financial Supervisory Authority (BaFin). This approval enables BitGo Europe to offer regulated crypto trading services, including an OTC trading desk and an electronic trading platform, for thousands of digital assets and stablecoins to institutional investors throughout the European Union. These operations are based out of Frankfurt, Germany, and build upon BitGo’s initial MiCA license, granted by BaFin in May 2025. With this extension, BitGo Europe now provides a comprehensive suite of services encompassing crypto custody, staking, transfer, and trading.

Financial Mechanics and Strategic Positioning

BitGo Europe's expanded services grant institutional investors aggregated access to numerous liquidity sources, including market makers and exchanges, facilitating competitive pricing and efficient trade execution. A key feature of BitGo’s offering is the capability to execute trading and settlement while client assets remain securely held in cold storage, in adherence to MiCA-compliant, regulated custody standards. This strategy aims to mitigate operational inefficiencies and reduce counterparty risk often associated with moving assets out of custody for trading purposes. BitGo Europe is positioned as one of the few regulated custodians offering a "full-stack platform" that integrates custody, trading, staking, and settlement. This integrated approach is designed to streamline institutional engagement with digital asset markets. Similar initiatives, such as Deutsche Börse’s Crypto Finance launching AnchorNote in 2025, also aim to bridge custody and trading through middleware like BridgePort to enhance liquidity management and security. Other firms, including Coinbase and Kraken, also offer comprehensive crypto services in Europe.

Market Implications

This BaFin approval for BitGo Europe is anticipated to increase institutional capital flow into European crypto markets by establishing a more streamlined and regulated pathway for engagement. The expansion contributes to the further legitimization of cryptocurrencies as an asset class within traditional finance, potentially fostering wider adoption and the development of regulated crypto services across other regions. Germany, through BaFin, has demonstrated a proactive stance in granting MiCA licenses, approving nine out of 25 such licenses across the continent, underscoring its leading role in Europe’s digital asset regulatory landscape. This regulatory environment is fostering a maturing digital asset ecosystem in Europe.

Brett Reeves, Head of European Sales and Go Network at BitGo, stated, >"We are thrilled to bolster our European platform and enable our clients to trade seamlessly, competitively, and confidently. By combining our institutional-grade custody solution with seamless, high-performance execution, clients will now be able to access deep liquidity with the peace of mind that their assets will remain in cold storage under MiCA-compliant, regulated custody. This is a game-changer for any institution looking to operate safely and efficiently in the digital assets markets and a strong step forward for Europe's maturing digital asset ecosystem."