21bitcoin: Austrian Startup Partners with U.S. Crypto Giant BitGo
The Salzburg-based Bitcoin startup 21bitcoin has entered into a partnership with the American crypto infrastructure provider BitGo. BitGo Europe GmbH will take over the regulated custody of the Bitcoin holdings of the platform and its users. The US parent company BitGo is currently valued at approximately 1.35 billion US dollars on the stock market.
Background of the Cooperation
21bitcoin was founded in Salzburg in 2020 and has since developed into one of the fastest-growing Bitcoin platforms in Europe. According to the company, it is active in 30 countries of the European Economic Area, manages assets of over 100 million euros, and counts more than 100,000 users. The team comprises over 30 employees at its locations in Salzburg, Vienna, and Munich.
BitGo Europe GmbH holds a MiCAR (Markets in Crypto-Assets Regulation) licence from the German Federal Financial Supervisory Authority (BaFin) as a regulated crypto service provider. 21bitcoin itself holds a corresponding licence from the Austrian Financial Market Authority (FMA). The cooperation is intended to ensure regulatory coverage at both levels.
BitGo Takes Care of Cold Storage
As part of the partnership, BitGo Europe GmbH provides regulated cold storage custody. The custodied assets are insured for up to 250 million US dollars. Users’ assets are held on a segregated basis, i.e. separately from other holdings.
Under the European MiCAR framework, providers that custody crypto assets for EU clients are required to be licensed as crypto service providers. Both companies fulfil this requirement with their respective national licences.
Expansion into Asset Management
21bitcoin does not want to be perceived as a pure trading portal, but as a comprehensive platform for Bitcoin asset management. In addition to buying and selling Bitcoin, the offering includes savings plans, Bitcoin-backed loans, inheritance planning, and solutions for corporate clients.
21bitcoin (legally: FIOR Digital GmbH) is supported by Volksbank Raiffeisenbank Bayern Mitte eG as a strategic partner. The company is one of the first Bitcoin companies in Europe to have received a MiCAR CASP licence from the Austrian FMA.
