21bitcoin Launches Europe’s First Pilot Bitcoin-Backed Lending Product
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, according to a note shared with Bitcoin Magazine.
“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.
The company made it clear last year that it wants to become the first bitcoin-only company in Europe to obtain a MiCAR (Markets in Crypto-Assets Regulation) license, allowing it to operate across the EU under unified crypto regulations.
Backed by strong 2023 growth and a strategic partnership with Volksbank Raiffeisenbank Bayern Mitte, 21bitcoin is enhancing transparency, user trust, and innovation.
Traditional finance entering Bitcoin
Nico Hirsch, Chairman of the Works Council at VR Bank Bayern Mitte, emphasized the significance of this collaboration for European banking: “This partnership demonstrates how traditional financial institutions can innovate responsibly, integrating emerging digital assets into their service offerings while maintaining full regulatory compliance.”
Sopra Financial Technology GmbH, a key partner in the pilot, will contribute its technical expertise in financial technology to support product development and integration with bank systems.
As the pilot progresses and develops, 21bitcoin will continue refining the product, focusing on security, transparency, and customer accessibility.
This post 21bitcoin Launches Europe’s First Pilot Bitcoin-Backed Lending Product first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
