BitGo Secures BaFin Approval to Expand Regulated Crypto Trading in Europe

BitGo has taken a major step forward in Europe after receiving approval from Germany’s financial regulator, BaFin, to launch regulated cryptocurrency trading. Known primarily for its custody and infrastructure services, the company can now offer both over-the-counter (OTC) and electronic trading across the European Union.

From Custody to Full-Service Platform

This milestone follows BitGo’s earlier success in May 2025, when its German arm, BitGo Europe GmbH, became one of the first companies to secure a MiCA license under the EU’s Markets in Crypto-Assets framework. That license covered custody, staking, and transfer services. With the latest authorization, BitGo expands its capabilities to include trading in cryptocurrencies and stablecoins.

By integrating custody and trading, BitGo is positioning itself as a one-stop platform for institutional clients. Its model allows trades to be executed with liquidity aggregated from exchanges and market makers, while settlements remain secured in BaFin-approved cold storage. This setup minimizes counterparty risks and ensures compliance across all 27 EU member states.

A Boost for Institutional Investors

Institutional investors—such as funds, asset managers, and pension schemes—stand to gain the most from this move. Traditionally, these groups have faced hurdles in the crypto market, including fragmented platforms and settlement risks. BitGo’s regulated framework now gives them the ability to trade, stake, and safely store assets in one place, simplifying their operations while meeting strict European compliance standards.

Industry experts suggest this strengthens BitGo’s position against competitors like Coinbase and Kraken. While other providers already offer regulated trading and custody, BitGo is among the few that deliver custody, trading, staking, and transfers under one regulatory umbrella.

BitGo’s approval highlights Europe’s push for regulatory clarity at a time when the United States continues to grapple with fragmented oversight. With MiCA providing a unified legal framework, Europe is emerging as a global hub for institutional crypto adoption.

The move may also encourage other service providers to expand in Europe, where demand from institutional investors is growing and regulatory certainty has become a defining advantage.