BitGo gets BaFin greenlight to supercharge crypto services in Europe

BitGo, a digital asset infrastructure provider that handles over $100 billion in assets under custody, has been granted an extension of its existing licence from Germany’s Federal Financial Supervisory Authority (BaFin), allowing it to expand its crypto services for European clients.

Via its local arm, BitGo Europe, it can offer custody, staking, transfer, and trading. Institutional clients will also have an over-the-counter (OTC) trading desk and several liquidity venues available.

The extension expands BitGo’s current Markets-in-Crypto-Assets (MiCA) license to include trading and its custody, transfer, and staking services counterparts. 

Europe’s cryptocurrency revenue is expected to surpass $26 billion in 2025, as Germany is the biggest adopter country in the industry. Market tailwinds have supportive regulatory structures such as MiCA, growing convergence between crypto-native firms and traditional financial institutions, and deals that could lead to consolidation.

Institutional interest in crypto surges amid regulatory clarity

Institutional interest in crypto has been increasing, driven by better infrastructure and the launch of crypto exchange-traded products (ETPs), which have lent legitimacy to the space. Clarity of regulation in places like Europe and the United Arab Emirates, and possible reform of the U.S. market structure, have helped drive adoption.

Some high-profile developments in institutional crypto this week include the planned U.S. debut of Bullish, a crypto exchange geared toward institutions, which is moving forward after securing a BitLicense and a Money Transmission License from the New York State Department of Financial Services. Meanwhile, StanChart’s venture capital arm unveiled plans for a $250 million digital asset fund in 2026.

Annabelle Huang, co-founder of Altius Labs, says that the coming wave of institutional crypto adoption is ongoing as fintech firms, like Robinhood and Stripe, develop their own blockchains.

As recently reported by Cryptopolitan, BitGo said it had confidentially filed for a U.S. listing, joining a wave of firms looking to capitalize on strong market momentum. The crypto sector’s climb to a $4-trillion market value has reignited interest in initial public offerings, with clearer regulation, corporate treasury adoption, and institutional inflows fueling a new wave of new listings.

IPO window opens as crypto firms eye U.S. listings

Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs, said that these are the best market conditions the crypto space has seen in years, and firms want to take advantage of that.

“These startups know that the IPO window can shut unexpectedly, especially in a volatile space like crypto, so they’re looking to strike while the iron’s hot.”

Established over ten years ago, BitGo is one of the largest crypto custody firms in the United States. It stores and protects digital assets for clients, which has gained importance as institutional interest in crypto grows.

In mid-2023, the company raised $100 million, reaching a valuation of $1.75 billion. The sector’s rapid growth has triggered a wave of IPO activity, with crypto exchange Bullish recently revealing its IPO filings. Meanwhile, crypto asset manager Grayscale and digital exchange Gemini, founded by Tyler and Cameron Winklevoss, have also submitted confidential plans to go public.

“Many crypto companies have matured. After over a decade, they’ve built stable client bases, some with SaaS-like margins and predictable cash flows,” said Kat Liu, vice president at IPO research firm IPOX.

Last week, U.S. President Donald Trump signed a law to create a regulatory regime for stablecoins, potentially allowing the dollar-pegged digital assets to become an everyday way to make payments and move money.

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