What happened?
Germany’s financial regulator, BaFin, has granted a full MiCA license to Trade Republic, one of Europe’s biggest fintech companies. This license allows the German firm to offer crypto custody services to its 4 million customers across 17 markets. With this license, Trade Republic can execute or transmit client orders and offer seamless crypto transfer services throughout all 30 EEA states.
Who does this affect?
This development directly impacts Trade Republic’s existing customer base of 4 million users by allowing them access to expanded crypto services. It also affects other financial institutions and fintechs who are racing to secure similar MiCA licenses before transition periods end. Organizations like neobanks, brokers, and traditional banks are hurrying to acquire these licenses, as failure to do so could mean losing their operational status in Europe.
Why does this matter?
This matters because obtaining a MiCA license is key to passporting services across the European Economic Area, potentially expanding market share significantly. The license not only enhances Trade Republic’s credibility but also sets a precedent as Germany emerges as a leader in granting these certifications. As more firms secure licenses, we can expect increased competition and innovation in the European crypto market.