Finoa, a digital asset custody and financial servicing platform, has announced that it has been granted full crypto custody, brokerage, and propriety trading licenses by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht or BaFin). This latest development makes the company a full-fledged and regulated financial institution.
A Major Leap Forward for Finoa
The granting of the license by BaFin is a significant milestone for Finoa since it was only operating under a preliminary crypto custody license all the way back to 2020. The upgraded licenses allow the company to further expand its range of digital asset custody services onwards. This includes the ability to securely store and manage cryptocurrencies, digital securities, and tokenized assets.
The approval of BaFin for Finoa’s broader range of services comes at an opportune time when the crypto market is experiencing turbulence due to crackdowns from key regulators, especially the U.S. Securities and Exchange Commission (SEC), according to the company’s co-founder and co-CEO Christopher May. He added that the licenses also send a “reassuring message” to their customers and other key players in the industry.
About the Finoa Platform
Finoa is a platform that offers institutional-grade custody solutions for digital assets. It provides end-to-end custody services for cryptocurrencies, as well as tokenized assets, digital securities, and other alternative assets. Its platform is designed to meet the needs of institutional clients, including family offices, asset managers, corporations, and high-net-worth individuals, among others.
The firm started with a $2.5 million seeding from top German venture capitals and business angels in 2019. Following its acquisition of a preliminary crypto custody license in 2020, the digital asset platform was able to secure $22 million from its Series A funding round in 2021.
The company quickly grew to accumulate more than 250 clients after that. Among the notable clients of the firm were CoinList, Deutsche Telekom subsidiary T-Systems, and Dapper Labs.
The license granted by BaFin is a full custody license, which means that Finoa can legally store digital assets on behalf of its clients. This is an important distinction, as many companies that provide digital asset custody services only hold a partial license, which limits the range of services they can offer.
In addition to custody services, Finoa also offers a range of financial services, including trading, staking, and lending. These services are designed to help clients maximize the value of their digital assets while minimizing risk.
The granting of the license comes at a time when the regulatory landscape for digital assets is rapidly evolving while governments and regulatory bodies around the world are grappling with how to regulate cryptocurrencies and other digital assets. The fact that Finoa has been granted full crypto custody, brokerage, and trading licenses by BaFin is a positive sign for the industry, as it shows that regulators are taking a proactive approach to digital asset regulation. It also shows that Finoa is well-positioned to meet the needs of institutional clients looking for secure and regulated digital asset custody and financial services.