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BitGo Europe secured BaFin approval to expand into regulated crypto trading, making it one of the few firms in Europe offering custody, staking, and trading under a single license.
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The move reduces friction for institutional investors by combining liquidity access and regulatory oversight within BitGo’s MiCA-compliant platform.
BitGo Europe has secured a major regulatory milestone after receiving approval from Germany’s financial watchdog BaFin to expand into regulated crypto trading. The move positions BitGo as one of the few firms in Europe offering custody, staking, and trading under a single license, joining established players such as Coinbase and Kraken.
The license extension allows BitGo’s Frankfurt-based division to provide both over-the-counter (OTC) and electronic trading for a wide range of digital assets and stablecoins. By combining these new services with its existing custody and staking offerings, BitGo aims to deliver a comprehensive one-stop solution for institutional clients across the European Union.
Expanding Beyond Custody
Traditionally known as a crypto custody provider, BitGo has steadily expanded its service suite to match growing institutional demand. Earlier in 2025, the company secured a Markets in Crypto-Assets (MiCA) license, giving it authorization to provide custody, staking, and transfer services under the EU’s new regulatory framework.
The BaFin approval now adds trading to this list, making BitGo one of the few firms operating under a fully regulated structure across multiple crypto verticals.
According to the company’s Wednesday press release, institutions will be able to source liquidity directly from market makers and exchanges, while assets remain safeguarded within BitGo’s MiCA-compliant cold storage infrastructure.
Reducing Institutional Friction
For European asset managers, pension funds, and other large investors weighing a move into digital assets, the development could reduce significant operational complexity. Instead of opening multiple accounts with different custodians and exchanges, clients can trade and settle directly through BitGo’s regulated system.
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.
BitGo’s approval also builds on its earlier partnership with Copper, a custody specialist with which it launched an “in-custody” trading network. The initiative allows assets to be traded while remaining within a ring-fenced regulated custody environment, reducing counterparty risk and enhancing security.
A Competitive Landscape
The expansion into trading places BitGo in direct competition with firms like Coinbase and Kraken, both of which already operate custody and trading platforms in the region. However, BitGo’s institutional-first approach and its focus on regulatory compliance could help it carve out a unique niche among Europe’s largest financial players.
Analysts suggest that with MiCA coming into force, firms that secure early regulatory approvals will have a competitive edge in onboarding traditional finance clients. By aligning with BaFin, one of Europe’s most influential regulators, BitGo is signaling its intent to be a leader in this transition.
With custody, staking, and now trading under one regulated roof, BitGo appears well-positioned to benefit from the anticipated return of institutional capital as the next wave of crypto adoption unfolds in Europe.
