Commerzbank Leads in Crypto Custody with German License

On November 15, the lender announced that local regulators had issued a crypto custody certificate to the German bank Commerzbank.

Commerzbank claims to be the first German “full-service” bank to receive this license in the country following the German Banking Act.

This enables the company to provide custody services for crypto assets and to offer “additional digital asset services.” The chief operating officer of Commerzbank, Jorg Oliveri del Castillo-Schulz, described the license acquisition as an “important milestone.”

The bank stated that its initial objective is to develop a blockchain-based platform that satisfies all local regulations, is “secure and dependable,” and provides institutional clients with crypto custody services.

Commerzbank’s announcement follows comparable news from DZ Bank, the third-largest bank in Germany, which introduced crypto custody services for institutional investors on November 6.

A novel platform for the storage and processing of digital financial instruments was unveiled by DZ Bank. It also stated that in June 2023, it applied for a crypto custody license to enable institutional investors and private clients to purchase cryptocurrencies.

After three years of operating its dedicated local subsidiary, the United States-based crypto custody firm BitGo was granted a license by the German Federal Financial Supervisory Authority in September to enhance its compliance with local regulations.

In the past year, the cryptocurrency landscape in Germany has acquired considerable traction.

Deutsche WertpapierServiceBank introduced the wpNex cryptocurrency trading portal in March, providing access to the digital asset industry for 1,200 banks and savings banks in Germany.