BitGo has received approval from the German regulator BaFin to offer regulated crypto trading in Europe, a key step in facilitating institutional access to the market. The authorization expands its services beyond custody, including OTC trading, access to electronic venues, staking, and transfers. This move impacts asset managers, custodians, and institutional counterparties in the EU, providing an integrated service package under regulatory supervision.
Context and Impact: BitGo and the European Regulatory Framework
The BaFin license positions BitGo among the entities operating trading and custody under a single regulatory framework in Germany, with a proposal focused on institutional clients. The firm offers OTC trading, access to electronic venues, as well as custody and staking. An integrated package can reduce operational friction for institutions seeking to hold tokenized assets and execute them in regulated markets.
This development comes as the MiCA framework is already in force. MiCA, effective since December 30, 2024, requires safeguards for asset custody, adequate capital requirements, and enhanced AML controls. These obligations raise entry barriers for smaller providers but aim to protect investors and ensure market stability. BaFin exercises direct supervision over crypto-related activities in Germany, assessing operational and capital compliance before issuing approvals.
Strategic Partnerships Strengthening Expansion
BitGo has established agreements with HTX, Kiln, and VivoPower that strengthen its integrated offering, including:
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Agreement with HTX for institutional trading.
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Partnership with Kiln to offer institutional staking on ZetaChain.
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Collaboration with VivoPower related to an initial $100 million acquisition in XRP.
These partnerships reinforce the integration of custody, staking, and execution.
Implications
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Lower operational friction: combination of custody and regulated trading under BaFin oversight.
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Expanded offering: includes institutional staking and OTC/electronic venue access.
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Regulated competition: pressure on providers not compliant with MiCA to adapt or lose listings.
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Operational focus: increased emphasis on AML controls, capital requirements, and asset segregation.
The BaFin authorization represents a key operational milestone for BitGo in Europe and a step toward the institutionalization of the crypto market in the region. The central regulatory context remains the full implementation of MiCA, alongside the institutional derivatives launch calendar, such as the planned start of Solana and XRP futures options on October 13, 2025, which significantly expands hedging options for professional investors.
