Hodli becomes Italy’s first licensed crypto portfolio manager under MiCA

Italy now has its first licensed crypto portfolio manager. Hodli, a fintech startup headquartered in Genoa, has received authorization from the Bank of Italy as a Crypto-Asset Service Provider under the European Union’s Markets in Crypto-Assets regulation, better known as MiCA.

The distinction here matters more than it might seem at first glance. Plenty of firms across Europe can custody crypto, essentially holding digital assets on behalf of clients. What Hodli can now do is actively manage those portfolios, making investment decisions, rebalancing allocations, and deploying strategies on behalf of its users.

What the license actually allows

MiCA created a standardized framework for crypto businesses operating in member states. The CASP designation is the gateway for firms that want to offer services like trading, custody, and, in Hodli’s case, portfolio management across the bloc.

For Italy specifically, the Bank of Italy serves as the competent authority granting these licenses. Hodli clearing that bar means the company met the regulator’s requirements around capital adequacy, governance, consumer protection, and operational resilience.

Hodli’s approach leans heavily on technology. The company uses proprietary algorithms and artificial intelligence to drive its portfolio management strategies, with AI models informing allocation and risk management.

Funding and growth ambitions

Hodli closed a funding round of 1.05 million euros in 2023, capital earmarked for expanding its footprint across Europe.

The company’s stated ambition goes beyond direct-to-consumer crypto management. Hodli wants to partner with traditional banks, essentially white-labeling its crypto portfolio management capabilities so that established financial institutions can offer digital asset investment products to their existing client bases.

What this means for investors and the broader market

For Italian retail investors, this creates a new option that did not previously exist in a regulated format. Having a domestically licensed portfolio manager lowers the barrier for investors who are crypto-curious but unwilling to take the operational risk of managing their own wallets and exchange accounts.

MiCA’s passporting provisions mean that a firm licensed in one EU member state can offer services across all 27 member countries. Hodli’s Italian license could become its ticket to broader European expansion without needing to seek separate authorizations in each jurisdiction.

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