Traditional banks are gaining ground in Europe’s regulated crypto market under the EU’s Markets in Crypto-Assets framework, or MiCA. By Sept. 16, banks accounted for nearly one in four firms on the European Securities and Markets Authority’s register of crypto-asset service providers, a notable increase from late June.

ESMA’s list shows the number of banks on the register rising to about 80 from roughly 40 between June 26 and Sept. 16. Over the same period, the total number of listed crypto-asset service providers grew from 243 to 349, lifting banks’ share from around 17% to almost 23% even as non-bank firms continued to make up the majority.

Banks expand faster than the overall market

The increase suggests that traditional lenders are moving quickly to establish a presence in regulated crypto services as MiCA takes effect across the European Union. While the broader register added more than 100 providers over the period, the banking cohort doubled, allowing banks to increase their weight on the list at a faster pace than the market as a whole.

Non-bank crypto firms still dominate ESMA’s register in absolute numbers. Even so, the latest data points to a meaningful shift in the composition of the regulated provider base, with banks now approaching a quarter of the listed entities.

Germany stands out in the latest additions

Much of the recent banking growth came from Germany, where dozens of cooperative and commercial banks appeared on ESMA’s MiCA register. The additions included Deutsche Bank as well as a wide range of institutions from the Volksbank, Raiffeisenbank and VR Bank networks.

That pattern indicates the expansion is not limited to a handful of large international lenders. Regional cooperative banking groups are also showing up on the register, suggesting that regulated crypto services are spreading through more traditional parts of the banking system.

Deutsche Bank’s custody plans highlight the trend

Among the newly listed names, Deutsche Bank stands out because it has already outlined a specific crypto offering. The bank has said it plans to launch digital asset custody services for institutional and corporate clients in Europe.

According to the source article, Deutsche Bank expects to receive regulatory approval for that offering under MiCA in October. Its appearance on the register therefore fits into a broader push by established lenders to develop regulated crypto products rather than relying on unlicensed or experimental structures.

MiCA gives banks a different route into crypto services

One reason banks may be moving quickly is that MiCA allows credit institutions to enter the market through a separate procedure from the standard authorization required for other crypto-asset service providers. Under Article 60 of MiCA, a bank can provide crypto-asset services after submitting the required information to its home regulator at least 40 working days before offering those services for the first time.

That notification process can provide a faster route than the regular CASP authorization path. The next confirmed step for newly registered banks is therefore tied to their own rollout timelines and any national supervisory review required under MiCA’s notification framework.

Source: cointelegraph.com