Digital asset liquidity provider, Hyphe, has reportedly received a MiCA (Markets in Crypto-Assets) license from German regulator, Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).
MiCA is intended to be a comprehensive EU framework for harmonizing crypto-asset rules across its member states. Its goals and objectives are to provide legal certainty, “encourage innovation, protect consumers, and ensure financial stability in the crypto market.”
The regulation covers crypto-asset issuers and service providers, “including exchanges and custodians, and applies to various crypto assets like stablecoins and other digital tokens.”
According to the update, this completes a process that started in 2021 with the intention of focusing “all of the group’s regulated activity within a newly-established German company,” Hyphe Markets GmbH.
Wertpapierinstitut status was reportedly granted back in 2023 when Hyphe received an Investment Firm Licence (WpIG) covering “MiFID II-related activity.”
Hyphe recently announced the development of “crypto-backed tokenised security,” Hyphe Bitcoin Bond.
Overseen by joint directors Dolf Diederichsen and Claus Huth, Hyphe’s client trading business and product development is “managed from headquarters in Munich, with an international team based there and in additional locations in Berlin and Amsterdam.”
The company now plans to expand its digital asset product and “service offering across Europe via an EU passport.”
Claus Huth, Hyphe Chief Operating Officer, has said that Hyphe is committed to high supervisory standards, providing banks, brokers, and asset managers with “access to digital asset liquidity under the EU-wide MiCAR framework.”
Huth added that focusing all their regulated activity in Germany provides a steadier foundation for the business.
They also mentioned that creating the ideal setup for their clients has been a lengthy but rewarding process, and he is now eager “to take the next step forward at this pivotal moment in the company’s story.”
Co-founder & CEO, Dolf Diederichsen, said that there is so much happening in the digital asset space at the moment, and he sees Hyphe continuing to play a crucial role in the “coming together of two worlds – digital asset markets and traditional finance.”
They also stated that they are pleased to see the MiCAR license granted and very proud of the team responsible.
Diederichsen further noted that some time ago they made the important decision “to optimise our corporate structure for high standards, product innovation and sustained expansion into other key European markets.”
They concluded that this is the “culmination of that process.”
