Banks Surge into EU Regulated Crypto Market as Share Hits 23%

Banks are rapidly expanding their presence in Europe's regulated crypto market under the European Union's Markets in Crypto-Assets framework (MiCA). The number of banks listed on the EU's MiCA crypto provider list doubled to about 80 from roughly 40 between June 26 and Sept. 16, according to a Cointelegraph analysis of MiCA register data from the European Securities and Markets Authority (ESMA).

The overall number of listed crypto-asset service providers (CASPs) rose from 243 to 349 over the period, but non-bank providers lost ground in relative terms. Their share fell from about 84% to 77%. While non-bank providers still dominate the register and grew in absolute numbers, banks expanded much faster.

Germany drove much of the banking expansion, with dozens of cooperative and commercial banks appearing on ESMA's MiCA register. Deutsche Bank, Germany's largest lender, plans to launch digital asset custody services for institutional and corporate clients in Europe. A Deutsche Bank spokesperson said they expect to receive regulatory approval for the offering under MiCA in October.