Commerzbank Obtains Crypto Custody License in Germany
The Germany-based Commerzbank is now legally equipped to offer crypto custody services and other digital asset services, making it the first “full-service” bank to receive such a license in the country.
Commerzbank, one of Germany’s leading banks, has been granted a crypto custody license. This significant news was announced by the bank on November 15th, marking a crucial step in the integration of cryptocurrency into mainstream banking.
Acquiring this license, according to the German Banking Act (KWG), positions Commerzbank to offer a broad spectrum of digital asset services, focusing primarily on crypto assets. As the first full-service bank in Germany to secure this license, Commerzbank is now ready to create a secure and reliable platform for digital assets that complies fully with local regulations, thus paving the way for other financial institutions in the country to follow suit.
The bank’s chief operating officer, Dr. Jörg Oliveri del Castillo-Schulz, described this development as an “important milestone”. He further elaborated that the license underscores Commerzbank’s commitment to leveraging the latest technologies and innovations, as well as its intent to support its customers in the realm of digital assets.
With crypto custody services via blockchain now legally permitted, the bank’s next step is to establish a platform that adheres to local regulations and provides institutional clients with secure and reliable services. This move is expected to fortify Commerzbank’s position in the evolving world of digital currency.
This step taken by Commerzbank mirrors similar strides in Germany’s cryptocurrency landscape. Notably, DZ Bank, Germany’s third-largest bank, unveiled its crypto custody offerings for institutional investors on Nov. 6. The bank also disclosed its new platform for processing and storing digital financial instruments, and its application for a crypto custody license that was filed in June of 2023. This license, once granted, will enable both institutional investors and private customers to purchase cryptocurrencies.
In another significant development, the United States crypto custody firm BitGo secured a license from the German Federal Financial Supervisory Authority (BaFin) in September. This enabled the firm to bolster its compliance with local regulations, thereby expanding its reach, after operating its dedicated local subsidiary for three years.
Germany’s crypto-landscape has been gaining impressive momentum over the past year. A notable instance was in March, when the Deutsche WertpapierServiceBank (Dwpbank) unveiled its wpNex crypto trading platform. This platform offers over 1,200 banks and savings banks in Germany access to the digital asset industry.
The crypto custody license granted to Commerzbank is a remarkable moment in the world of digital finance, further solidifying the integration of cryptocurrencies into the framework of mainstream banking. As more banks and financial institutions follow suit, the impact on the crypto landscape in Germany, and potentially the world, could be profound.
