Traditional Lenders Nearly Double Their Share on EU's MiCA Registry, Reaching 23%
Traditional financial institutions have increased their representation to almost a quarter of all entities on ESMA's MiCA registry, following an approximate doubling since the end of June.
Traditional financial institutions are experiencing rapid growth in their involvement within Europe's regulated cryptocurrency marketplace, with conventional banking entities now comprising close to a quarter of all service providers registered under the European Union's Markets in Crypto-Assets framework (MiCA).
Traditional lenders on the EU's MiCA cryptocurrency provider registry increased twofold to approximately 80 from around 40 during the period spanning June 26 through Sept. 16, based on a Cointelegraph examination of MiCA registration information from the European Securities and Markets Authority (ESMA).
The total count of registered crypto-asset service providers (CASPs) climbed from 243 to 349 throughout this timeframe, however non-banking providers experienced a decline in proportional representation, seeing their percentage decrease from approximately 84% to 77%.
Although non-banking providers continue to represent the majority on the registry and increased in total numbers, traditional banks experienced significantly faster expansion, boosting their proportion from approximately 17% during late June to close to 23% by September.
German banks pile into crypto
Germany was responsible for a substantial portion of the banking sector's expansion, with numerous cooperative and commercial banking institutions making their appearance on ESMA's MiCA registry.
Recently added entities include Deutsche Bank, the nation's most prominent lending institution, which announced on Wednesday its intentions to introduce digital asset custody solutions targeting institutional and corporate customers throughout Europe. A representative from Deutsche Bank informed Cointelegraph that the financial institution anticipates receiving regulatory clearance for this service under MiCA during October.
This movement reaches beyond Europe's most prominent banking corporations. Germany's new additions encompass many Volksbank, Raiffeisenbank and VR Bank organizations, demonstrating that compliant cryptocurrency services are penetrating the nation's regional cooperative banking infrastructure rather than staying confined to major international banking institutions.
Banks have a different route into MiCA
In contrast to cryptocurrency firms that are required to seek CASP authorization, traditional banks have the ability to offer crypto services under MiCA via an alternative notification mechanism.
According to Article 60 of MiCA, a credit institution has the option to offer crypto-asset services provided it delivers the necessary information to its domestic regulatory authority no less than 40 working days prior to offering such services for the initial time.
This notification pathway provides banks with an avenue to enter the crypto space without navigating through the conventional CASP authorization procedures.