Banks Flood EU Regulated Crypto Market as Share Doubles to 23%

The European Union's regulated crypto market is seeing a surge in participation from traditional lenders. The number of banks listed on the EU's MiCA (Markets in Crypto-Assets) provider list has doubled to about 80 between June 26 and Sept. 16, according to an analysis of ESMA (European Securities and Markets Authority) data.

This rapid expansion gives banks a share of nearly 23% among listed crypto-asset service providers (CASPs), up from around 17% in late June. In contrast, non-bank providers saw their relative share fall from about 84% to 77%, despite growing in absolute numbers from 243 to 349.

Germany's banks are driving much of this growth, with dozens of cooperative and commercial banks appearing on ESMA's MiCA register. Deutsche Bank, Germany's largest lender, has announced plans to launch digital asset custody services for institutional and corporate clients in Europe under MiCA, expecting regulatory approval in October.

The notification route under Article 60 of MiCA allows banks to expand into crypto without going through the standard CASP authorization process, giving them a faster way to enter this new market.