BitGo Breaks Through With MiCA License: Accelerating Crypto Custody Race In Europe

What does BitGo achieve with the MiCA license?

BitGo Europe GmbH, based in Frankfurt since 2023, is one of the first custodians to receive a MiCA license – the EU’s unified regulatory framework for managing digital assets, from stablecoins to custody services. With this license, BitGo can launch its services across the EU without having to apply for separate licenses in each country, saving time and costs. Harald Patt, CEO of BitGo Europe, emphasized: “MiCA opens the door for us to serve both local crypto companies and traditional financial institutions such as banks and investment funds.”

In addition to custody, BitGo also offers staking, trading, settlement and tokenization services, meeting the growing demand from institutional organizations. This is a big advantage as Europe, according to Coincub's report, is leading with 63 banks supporting crypto transactions, far ahead of Asia (24 banks) and North America.

BitGo vs. Competitors: Who's Leading?

Europe is currently a hotbed for banks and financial firms getting into crypto, with 63 banks offering trading and custody services, ranging from big names like Swissquote Bank to fintech companies like Revolut. BitGo, with its MiCA license, is competing directly with the likes of:

• Boerse Stuttgart Digital: The first company to receive a MiCA license in January 2025, Boerse Stuttgart Digital focuses on institutional custody and trading. However, they lack expanded services like staking or tokenization, where BitGo has an advantage.

• Swissquote Bank: Offering crypto trading, staking, and custody to both individuals and institutions, Swissquote also operates the SQX exchange to increase liquidity. But their service coverage is primarily focused on Switzerland, while BitGo targets the entire EU.

• Revolut: This fintech allows for in-app trading of more than 30 cryptocurrencies, but does not focus on institutional custody like BitGo. Revolut is more suited to individual investors, while BitGo targets large banks and funds.

BitGo stands out with its global expertise and diverse service portfolio, but local rivals like Boerse Stuttgart Digital have the advantage of relationships with EU regulators. The race is even more intense as only 17 companies have been granted MiCA licenses, suggesting that the regulatory hurdles remain high.

European Crypto Industry: Opportunities and Challenges

The MiCA license helps BitGo gain credibility in the EU digital assets market, estimated to be worth $1 trillion. MiCA ensures compliance with anti-money laundering (AML) and investor protection regulations, helping attract traditional financial institutions (TradFi) – from banks like Banco Santander to hedge funds. The participation of 63 banks in crypto trading shows that Europe is becoming a hub for innovation, far surpassing North America, where banks like Signature and Silvergate have struggled due to regulatory pressure.

But the challenges are not small. Ledger’s recent Discord scam, where hackers spread fake links, is a warning about cybersecurity. BitGo needs to invest heavily in security to avoid similar incidents, especially when it comes to institutional custody. Furthermore, MiCA compliance requirements—such as rigorous AML/CTF reporting—could increase operating costs, putting pressure on smaller companies. Some argue that MiCA could force smaller crypto companies to merge or exit the market, giving “big guys” like BitGo an advantage.

Conclude

The MiCA license is a game-changer for BitGo, placing them at the forefront of the European custody market. With 63 banks participating in crypto trading and a growing MiCA regulatory framework, BitGo has the opportunity to become the bridge between TradFi and crypto. But to surpass competitors like Boerse Stuttgart Digital or Swissquote, BitGo needs to maintain its edge in technology, security, and expand services like The Go Network – an inter-institutional payments platform.

In a trust-sensitive market, BitGo needs not only a license but also to prove that they are trustworthy. Can they shape the future of crypto custody in Europe? With their current strategy, BitGo is on the right track, but the race is only just beginning.