"Austrian Bitcoin platform 21bitcoin has teamed up with VR Bank Bayern Mitte eG and Sopra Financial Technology GmbH to launch a pioneering European pilot project in hopes to develop an institutional-grade Bitcoin-backed credit product. The project hopes to enable banks and financial service providers to offer regulated lending solutions that are backed by Bitcoin. By creating a fully compliant 'white-label product,' the consortium is positioning Bitcoin as a mainstream, regulated asset class within the European financial industry. "Our goal is to make Bitcoin accessible and useful for everyone," said Daniel Winklhammer, CEO of 21bitcoin. "Together with our strong partners, we are developing Europe's first institutional-grade Bitcoin credit product - secure, transparent, and made for the people of Europe.""
"Through the collaboration, 21bitcoin assumes a central role in customer experience, custody, and transaction processing, ensuring full compliance with existing regulations as well as the upcoming Markets in Crypto-Assets Regulation (MiCAR). Unlike conventional loans, this solution allows customers to unlock liquidity from their digital assets without having to sell them, retaining exposure to Bitcoin's price potential while gaining access to funds. In other words, through the product, customers can get cash while keeping their Bitcoin investments. The loan system will follow all European rules and regulations, making it safe and secure. Banks and financial services will also be able to offer it as a white-label solution under their own brand."
A consortium formed by 21bitcoin, VR Bank Bayern Mitte eG, and Sopra Financial Technology is piloting an institutional-grade Bitcoin-backed credit product for European banks and financial service providers. The product is designed as a fully compliant white-label solution that positions Bitcoin as a regulated mainstream asset and adheres to current rules and upcoming Markets in Crypto-Assets Regulation (MiCAR). 21bitcoin will manage customer experience, custody, and transaction processing. The loan model enables clients to access cash liquidity without selling Bitcoin, preserving price exposure while providing regulated lending. Banks can offer the solution under their own brand across the EU.
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