A Danish challenger bank has recently achieved a significant milestone by becoming the first financial institution in Scandinavia to be granted a Crypto-Asset Service Provider (CASP) license under the European Union’s Markets in Crypto-Assets regulation. This new authorization broadens the capabilities of its in-app trading platform, Lunar Block, which was launched in 2022, and enables the bank to offer cryptocurrency services across the EU without the need for individual approvals in different countries.
The CASP license supersedes the previous registration the bank had with Denmark’s financial authority, Finanstilsynet. With the new license, the crypto trading service can directly cater to users in Denmark, Sweden, and Norway. This platform functions seamlessly within the bank’s existing app, which also provides features such as standard deposit accounts, payment cards, and business banking functionalities.
The emphasis on regulatory compliance is highlighted by the bank’s management, noting that such regulations are crucial for transforming innovative ideas into reliable services. The significance of cryptocurrency and its potential role in the digital asset ecosystem has been underscored as a key aspect of their operational philosophy.
The trend of European challenger banks seeking similar crypto licenses is on the rise. Notably, a Zurich-based bank secured a CASP license in September, and Robinhood is actively expanding its crypto services under the MiCA regulation framework. In contrast, another prominent neobank is currently navigating the application process for such licensing.
In terms of growth, this challenger bank has experienced considerable success, reaching a remarkable one million users by March 2025, with an annual transaction processing volume of 121 million. This positions it among the larger digital banking entities within the Nordic region. It also holds a Danish banking license obtained back in 2019 and employs approximately 400 staff spread across its operational territories, which include Denmark, Sweden, and Norway.
The design of the crypto trading platform is user-centric, featuring transparent fee structures and in-app trading controls. Users are offered the ability to execute trades starting from a minimum size of 10 kroner, with a pricing model that relates to trading volume instead of constraining users with subscription tiers.
The CASP license comes with a unique benefit known as passporting, a feature that permits firms authorized in one EU country to operate across all EU member states. Consequently, this allows the bank to potentially expand the Lunar Block service into other European markets such as Germany, France, and the Netherlands without reapplying for licenses in each location.
However, the bank has yet to reveal specific plans for market expansion beyond its current user base. Additionally, it has not disclosed the proportion of its customers who actively engage in cryptocurrency trading via Lunar Block, nor has it provided information on the revenue generated from the platform.
As the crypto landscape continues to evolve, this development showcases the growing intersection between traditional banking and emerging digital currencies, reflecting a broader trend within the financial services industry as it adapts to meet changing consumer demands and regulatory environments.