BitGo’s BaFin License Extension Could Expand Bitcoin Custody, Staking and Trading Services in Europe

• BitGo Europe gains BaFin approval to add trading and OTC to custody, staking and transfer services.

• Institutional access expands via multiple liquidity venues and a dedicated OTC desk.

• European crypto revenue is projected at $26 billion this year (Statista), with Germany leading adoption.

BitGo MiCA license extension: BitGo Europe secures BaFin approval to offer custody, staking, trading and OTC services EU-wide — read expert analysis and key takeaways.

What is BitGo’s BaFin license extension?

BitGo MiCA license expansion by Germany’s BaFin permits BitGo Europe to provide regulated custody, staking, transfer and now trading services to institutional clients across the EU. This extension builds on BitGo’s prior MiCA authorization and formally adds trading and OTC capabilities under German supervision.

How will institutional investors benefit from the BitGo Germany license extension?

Institutional investors gain regulated custody with integrated trading and OTC execution, lowering operational friction. With access to multiple liquidity venues and a dedicated OTC desk, institutions can execute large trades more efficiently and benefit from compliance assurances under a clear European regulatory framework.

BitGo’s move creates further competition in a burgeoning European crypto market that is expected to generate $26 billion revenue this year, according to one estimate.

BitGo, a digital asset infrastructure company with more than $100 billion in assets under custody, has received an extension of its license from Germany’s Federal Financial Supervisory Authority (BaFin), enabling it to offer regulated crypto services to European investors.

The company said its local subsidiary, BitGo Europe, can now provide custody, staking, transfer, and trading services. Institutional clients will also have access to an over-the-counter (OTC) trading desk and multiple liquidity venues.

The extension builds on BitGo’s previous Markets-in-Crypto-Assets (MiCA) license, also issued by BaFin, and adds trading to the existing custody, transfer and staking services. BitGo acquired its initial MiCA license in May 2025, which allowed it to offer certain services to traditional institutions and crypto-native companies in the European Union.

Source: Bitgo

Statista projects that cryptocurrency revenue in Europe will reach $26 billion this year, with Germany leading adoption in the region. Supportive regulatory frameworks such as MiCA, growing integration between crypto-native firms and traditional finance, and consolidation-driving deals are tailwinds for the market.

Why does the MiCA license extension matter for Europe’s market structure?

The BitGo MiCA license extension signals greater regulatory clarity and operational scale for custody and trading services inside the EU. Regulators and market participants increasingly prefer licensed providers, which raises trust and drives institutional product development like ETPs and custody-backed services.

What does this mean for crypto infrastructure and competition?

BitGo’s expanded authorization intensifies competition in regulated custody and trading, likely accelerating product innovation and fee competition. Institutional trading desks and fintech entrants can leverage licensed custody to onboard clients that require regulated counterparties and clear compliance postures.

Frequently Asked Questions

Is the BaFin extension limited to Germany or valid across the EU?

The BaFin extension authorizes BitGo Europe to operate under Germany’s supervisory framework and to offer services to EU institutional clients. This follows the MiCA regime’s goal to harmonize crypto rules across the bloc, enabling authorized providers to service multiple member states.

How does this affect custody and staking security?

Regulated custody and staking under BaFin oversight require robust compliance, segregation controls and reporting standards. Institutional clients benefit from clearer operational controls and an audited governance framework for digital asset custody and staking services.

Will this drive more institutional inflows into crypto?

Yes. Clear licensing and integrated trading/custody services reduce onboarding friction and counterparty risk, encouraging pension funds, asset managers and banks to consider crypto allocations within regulated wrappers.

Key Takeaways

• Regulatory expansion: BaFin’s extension adds trading and OTC to BitGo Europe’s MiCA-authorized services.
• Institutional advantage: Institutions gain access to custody, staking and execution under a single regulated provider.
• Market impact: The move fuels competition and supports larger institutional adoption across a $26 billion European crypto market.

Conclusion

The BaFin extension for BitGo Europe strengthens regulated infrastructure by combining custody, staking and trading under a licensed framework. As Europe’s crypto market matures, licensed providers like BitGo can enable safer institutional participation — watch for increased product activity and consolidation as the sector scales.