Blockrise, a Dutch Bitcoin (BTC) focused startup, has been permitted to continue its financial services in the Netherlands and expand to the rest of Europe. The Netherlands Authority for the Financial Markets (AFM) granted Blockrise its license under the new European MiCA (Markets in Crypto-Assets regulation) on Nov 25. This marks a key milestone in the institutionalization of Bitcoin and places the Netherlands at the “forefront of regulated financial Bitcoin services in Europe.”
The MiCA license allows Blockrise to provide its Bitcoin services throughout Europe under a single license. This makes Blockrise one of a select group of firms “gaining access to the newly regulated Bitcoin market.”
Jos Lazet, CEO of Blockrise, said that for them, this “license recognizes that their Bitcoin services have matured.”
Lazet added that institutional parties, corporate investors, and high-net-worth individuals want to allocate assets in Bitcoin, but only “through regulated parties with transparency, risk management, and security.”
Thanks to the MiCAR license, they “can now expand into the European market,”
Blockrise claims to distinguish itself in the market as a ‘Bitcoin-only’ platform, meaning that “no other cryptocurrencies are offered on the platform.”
While the firm says that it has been focusing on this for some time, it recently opted “to fully implement this strategy.”
As noted in the update, the choice for Bitcoin-only was logical “given the market dominance and lower volatility.” Moreover, it provides simplicity “for clients and market proposition.”
The awarding of the MiCAR license to Blockrise is putting pressure on traditional FIs to “rethink their Bitcoin-related services.”
During the past year, demand for new Bitcoin-related services “has increased significantly, with an expansion in the offering of Bitcoin-backed loans, i.e., loans collateralized by Bitcoin.”
Lazet continued by noting that their clients asked them if they could offer a service to provide liquidity “using Bitcoin as collateral.”
Since this product aligns with their focus, they “acted and developed this solution in-house.”
Starting this week, Blockrise will offer this new lending “service to all its business clients, offering business loans starting from €20,000.”
The market emphasizes collateral security, and Blockrise distinguishes itself by “retaining ownership of the Bitcoin deposited with the client.”
This provides assurance that the Bitcoin will “not be lent out to other parties.”
When offering this service, it also ensures compliance with “all MiCAR requirements.”
Earlier, Blockrise raised two million euros in seed funding “from a consortium of venture capitalists and angel investors.”
This is Blockrise’s first external investment round, intended “to raise capital for further growth.” The investment marked a significant step toward a planned Series A round, which can now “be initiated with the receipt of the MiCAR license.”
At Blockrise, they’re working consistently to position themselves as the Bitcoin-only platform in the European Union.
To achieve this, Lazet said that they aim to raise capital from investors who support Blockrise’s Bitcoin vision.
Founded in 2017, Blockrise is a Bitcoin-only platform based in Rotterdam, offering services such as custody, trading, asset management, inheritance planning, and Bitcoin-backed loans. The firm says that it serves high-net-worth individuals, corporate investors, and institutions.