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Together with VR Bank Bayern Mitte and Sopra Financial Technology, 21bitcoin is developing Europe’s first institutional, fully regulated Bitcoin-backed loan product.
The goal of this project is to create an innovative solution that makes Bitcoin usable as loan collateral – without selling, without compromise, and in full compliance with all regulatory requirements.
Bitcoin as Collateral – Without Selling
More and more people want to hold their Bitcoin long-term while still having access to liquidity. That’s exactly where we come in: Together with Volksbank Raiffeisenbank Bayern Mitte eG and Sopra Financial Technology GmbH, we are launching a pilot project for a Bitcoin-backed lending product that allows our customers to use their Bitcoin as collateral – without having to sell it.
The goal: a fully compliant Bitcoin-backed lending solution that enables banks and financial service providers to enter the digital asset business – safely, transparently, and seamlessly.
“Our mission is to make Bitcoin both accessible and usable for everyone. Together with our strong partners, we are developing Europe’s first institutional-grade Bitcoin-backed loan product – secure, transparent, and made for the people of Europe,”
explains Daniel Winklhammer, CEO of 21bitcoin.
Pioneering Bitcoin Integration
As a regulated Bitcoin broker, we play the central role in this project – from customer experience and custody to settlement. Naturally, we meet all regulatory requirements, including those set out by the upcoming Markets in Crypto-Assets Regulation (MiCAR).
For us, this project represents an important step toward bridging traditional banking and the decentralized Bitcoin economy.
With VR Bank Bayern Mitte eG and Sopra Financial Technology GmbH, we have two strong partners who combine banking and technology at the highest level.
VR Bank Bayern Mitte eG is among the first German banks with a clear Bitcoin strategy and brings extensive experience in implementing credit solutions within the banking environment.
“Our experience shows that there is strong customer demand for regulated financial services around Bitcoin. With this solution, our customers can leverage their Bitcoin holdings without missing out on potential price appreciation or facing tax implications from a sale.
This strengthens our position as a digital pioneer in regional banking,”
says Andreas Streb, CEO of VR Bank Bayern Mitte.
Technology Meets Regulation
Sopra Financial Technology GmbH contributes its technological expertise and many years of experience integrating complex financial systems. Its infrastructure enables seamless connectivity between traditional banking systems and blockchain technology – an essential foundation for successful implementation.
“Bitcoin-backed lending is the next logical step for forward-thinking financial institutions. Through this partnership, we are establishing the technological and regulatory foundation to open up this market securely and efficiently,”
explains Thomas Münch, Product Owner at Sopra Financial Technology.
A Milestone for Europe
This pilot project marks a turning point: Bitcoin is evolving beyond its role as a pure investment and becoming part of established financial products.
Together with our partners, we’re demonstrating that innovation and regulation can go hand in hand – and that Bitcoin has already found its place in Europe’s financial landscape.
For us at 21bitcoin, this is another step on our mission to make Bitcoin accessible and usable for everyone – securely, simply, and transparently.
