In a significant development for the cryptocurrency landscape, BitGo, a leading crypto custody provider, has received approval from Germany’s financial regulator, BaFin, to broaden its operations into regulated crypto trading. This move, announced in a press release on Wednesday, allows BitGo Europe, based in Frankfurt, to provide both over-the-counter trading and an electronic trading platform for thousands of digital assets and stablecoins.
This expansion follows a partnership formed earlier this year between BitGo and custody specialist Copper, which aims to create an “in-custody” trading network. This innovative network seeks to integrate major exchanges, enabling assets to be traded while securely held within a regulated environment. The approval further builds upon BitGo’s earlier acquisition of a Markets in Crypto-Assets (MiCA) license in May 2025, enhancing its existing services such as custody, staking, and transfers.
“Institutions need deep liquidity and reliable execution, but they also need the assurance of regulatory oversight,” said Brett Reeves, BitGo’s head of European sales. “We’re aiming to provide both in one place.”
With this new license, institutions now have the ability to source liquidity from market makers and exchanges through BitGo’s platform. This integration could prove especially beneficial for European pension funds and asset managers contemplating a foray into the cryptocurrency market. Rather than managing separate accounts across various exchanges and custodians, these institutions can trade and settle securely within BitGo’s regulated framework while keeping their assets safe in MiCA-compliant cold storage.
BitGo’s expansion into regulated trading adds to the competitive landscape, where industry giants like Coinbase and Kraken already offer similar services in Europe. As the cryptocurrency sector evolves, regulatory compliance coupled with innovative trading solutions is becoming essential for institutional investors looking to navigate this dynamic market.
BitGo Expands into Regulated Crypto Trading
The recent developments surrounding BitGo’s approval by BaFin hold significant implications for institutions entering the cryptocurrency market.
- Regulatory Approval:
- BitGo received approval from Germany’s BaFin for regulated crypto trading.
- This enhances the credibility and trust in BitGo’s services among institutional investors.
- Expanded Services:
- Allows BitGo Europe to offer over-the-counter (OTC) trading and an electronic trading platform.
- Enables trading of thousands of digital assets and stablecoins.
- Integration with Custody Solutions:
- Partnership with Copper for an “in-custody” trading network to facilitate trading while assets are securely held.
- Reduces risks associated with transferring assets between various exchanges and custodians.
- Existing MiCA License:
- The recent approval builds on the existing Markets in Crypto-Assets (MiCA) license obtained in May 2025.
- Allows institutions to utilize BitGo’s services for custody, staking, and transfers alongside trading.
- Liquidity Access:
- Institutions will have access to liquidity from market makers and exchanges through BitGo’s platform.
- Enhanced liquidity can lead to more efficient trading for institutional investors.
- Benefits for European Institutions:
- Streamlined entry into crypto trading with reduced friction.
- Ability to trade and settle operations within a regulated environment while maintaining asset security.
- Commitment to Regulatory Oversight:
- BitGo emphasizes the importance of regulatory oversight for institutional clients seeking reliable execution.
- This could potentially encourage more institutions to engage in crypto markets confidently.
BitGo Expands Its Footprint: A Game Changer for Regulated Crypto Trading
BitGo’s recent approval from Germany’s BaFin marks a significant step for crypto custody providers, enabling them to venture into regulated trading. This development not only enhances BitGo’s service offerings but positions them competitively against established exchanges like Coinbase and Kraken, which also provide custody and trading services in Europe. The addition of over-the-counter trading and an electronic trading platform allows BitGo to cater to a wider audience, particularly institutional investors seeking a streamlined solution.
Competitive Advantages: BitGo’s robust infrastructure integrates trading with custodial services under a single regulatory framework, reducing the complexities typically associated with engaging multiple platforms. This approach could significantly attract European pension funds and asset managers, as it minimizes the friction of managing disparate accounts. Furthermore, with compliance under MiCA regulations, BitGo can assure its clients of a secure and legally sound environment, appealing to those wary of the volatile crypto landscape.
Disadvantages: However, BitGo’s focus on institutional clients may inadvertently alienate retail investors who often rely on user-friendly interfaces and lower trading fees. The competition in this segment is fierce, with players like Coinbase and Kraken boasting established reputations and broad customer bases. If BitGo does not adapt efficiently to cater to individual traders, it risks losing out on a sizeable market segment.
This strategic move could particularly benefit institutional clients looking for a one-stop shop for crypto trading and custody, simplifying the process of entering the asset class. Conversely, it may create challenges for existing exchanges that have built their business models around standalone trading and custody solutions, forcing them to innovate or potentially lose market share.
