German watchdog’s license extension strengthens institutional access to digital assets
BitGo, a leading digital asset infrastructure firm with over $100 billion in assets under custody, has received approval from Germany’s Federal Financial Supervisory Authority (BaFin) to expand its services in Europe. The license extension allows BitGo Europe to offer trading alongside custody, transfer, and staking services, marking a major step in regulated crypto market access.
BitGo Expands Services Under BaFin Oversight
The new authorization builds on BitGo’s earlier Markets-in-Crypto-Assets (MiCA) license, granted in May 2025, which enabled custody and staking solutions. With this extension, institutional clients can now access over-the-counter (OTC) trading desks and multiple liquidity venues directly under BaFin’s regulatory framework.
“This approval strengthens our ability to deliver institutional-grade services across Europe, providing both safety and efficiency to clients navigating the evolving digital asset landscape,” said a BitGo spokesperson.
Europe’s Growing Crypto Market
Europe’s regulated crypto sector is expanding rapidly. Statista projects the region’s cryptocurrency revenue will reach $26 billion in 2025, with Germany leading adoption. Supportive rules under MiCA, combined with stronger links between traditional finance and crypto-native firms, are driving institutional confidence.
Analysts note that Europe’s regulatory clarity contrasts with the U.S., where market structure debates remain ongoing. “BaFin’s consistent oversight is creating a competitive advantage for Europe in digital assets,” said a Frankfurt-based financial regulation expert.
Rising Institutional Demand
The announcement comes amid broader momentum in institutional crypto adoption. This week, Bullish exchange gained key licenses in New York, and Standard Chartered’s venture capital arm unveiled a $250 million digital asset fund launch set for 2026.
Such developments highlight how banks, funds, and large enterprises are increasingly treating crypto as a core asset class rather than an experimental investment.
By securing BaFin’s approval, BitGo positions itself as a frontrunner in Europe’s regulated crypto infrastructure market, offering institutions a safer path to custody, staking, and now trading. With Europe expected to surpass $26 billion in crypto revenue this year, the move adds pressure on competitors to strengthen compliance and expand services.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.