US-based crypto custodian BitGo has obtained a cryptocurrency custody licence in Germany from the Federal Financial Supervisory Authority (BaFin).
BitGo has already been providing cryptocurrency custody services under BaFin supervision since 2019 as part of a transitional regime. Additionally, in 2021, the company obtained approval from the New York Department of Financial Services (NYDFS) for a New York trust charter.
According to Coindesk, Germany has been actively fostering a conducive environment for cryptocurrency custody and related services, positioning itself as a prominent player in Europe. To this end, the country has enacted laws to encourage banks and custody specialists to handle digital assets securely.
Representatives from BitGo Europe cited by the same source noted BaFin’s influential role in shaping global crypto regulation, emphasising the importance of maintaining a secure regulatory framework. They also expressed satisfaction with the achievement of obtaining the crypto custody licence in Germany, stating that BitGo had diligently worked toward this goal.
In August 2023, BitGo secured USD 100 million in a Series C financing round, which brought the company’s total valuation to USD 1.75 billion. While BitGo has chosen not to reveal the identities of the investors involved, it has shared that the newly acquired funds will be utilised to execute strategic acquisitions and to expand the reach of its regulated custody, wallet, and infrastructure solutions globally. At the time, BitGo officials emphasised the rising demand for regulated custody solutions both within the United States and on a worldwide scale.
What else has BitGo been up to?
BitGo partnered with UK-based fintech Coincover in March 2023, to allow clients to benefit from wallet access recovery. The two companies have been working together since 2019 to provide secure business continuity features to their institutional clients. This partnership allowed BitGo clients to recover their wallets securely by tapping Coincover in case they lose access to their keys.
According to the company press release, the two companies aimed to create an industry standard of digital asset protection by applying lessons learned from recent events. The goal was to make sure that BitGo’s clients can understand the security risks of digital assets while building trust to encourage mass adoption. Once a business decides what kind of wallet set-up they want to go with, Coincover creates a backup and recovery solution to minimise the risks of the business having to determine that for themselves.
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