Bitcoin News Update: Blockrise Leverages MiCA Framework: Introducing Institutional Bitcoin Lending in the EU

Blockrise, a Bitcoin-focused startup based in the Netherlands, has achieved a milestone by becoming the first to obtain a regulatory license under the European Union’s Markets in Crypto-Assets (MiCA) regulations,

across the European market. The Dutch Authority for the Financial Markets (AFM) issued the license, which permits Blockrise to provide custody, trading, and asset management services for (BTC) throughout the EU. This achievement represents a major advancement in legitimizing institutional-level crypto offerings within the EU’s developing regulatory framework.

Blockrise is pushing boundaries beyond standard custody solutions. The company now offers a Bitcoin-collateralized lending product for businesses, with loan amounts starting at 20,000 euros ($23,150). Companies can use their Bitcoin as collateral to access financing, with an initial interest rate set at 8%,

. Although MiCA does not yet regulate lending, Blockrise CEO Jos Lazet pointed out that the framework lays the groundwork for scaling such services. “MiCA forms the foundation for Blockrise to deliver Bitcoin-backed loans, currently limited to business clients to remain within regulatory boundaries,” he explained.

MiCA, which will be fully enforced by late 2024, governs crypto issuance and trading but does not yet address lending, DeFi, or mining activities. Lazet remains hopeful about future developments. “MiCA hasn’t covered every aspect yet, but it’s anticipated to broaden in the future to include lending, mining, payments, and more,” he commented. This outlook fits with the EU’s broader goal of encouraging innovation while safeguarding consumers.

Blockrise’s business model utilizes a “semi-custodial wallet structure,” allowing users to maintain control via a digital key instead of a traditional private key. The company uses hardware security modules to create Bitcoin wallets, and

to ensure security. This method offers a balance between ease of use and risk management, which is crucial for attracting institutional investors. Blockrise currently oversees around €100 million ($116 million) in assets for its clients.

The company’s progress under MiCA demonstrates the EU’s increasing acceptance of crypto innovation. At the same time, other ventures such as Pi Network are also using MiCA compliance to expand into European markets.

, indicating its preparedness for listings on EU exchanges and for institutional participation. These moves highlight how the regulatory framework can draw global crypto businesses to the region.

Blockrise’s achievement sets an example for startups navigating complex regulations to grow their services. By prioritizing compliance and innovation, the company is well-positioned to benefit from the EU’s growing crypto sector, and its lending product addresses a key need in institutional finance.