- Commerzbank announced on November 15 that local regulators had awarded the bank a license to handle cryptocurrency.
- The innovative infrastructure that DZ Bank has developed for handling and archiving digital financial assets was revealed.
Commerzbank, a German bank, announced on November 15 that local regulators had awarded the bank a license to handle cryptocurrency.
According to Commerzbank, this license is the nation’s first “full-service” German bank to be issued under the German Banking Act (KWG). It will be able to provide “further digital asset services” and custody of cryptocurrency assets as a result.
The license is a “significant milestone,” according to Commerzbank’s chief operating officer, Dr. Jörg Oliveri del Castillo-Schulz. Schulz added:
“This highlights our ongoing commitment to applying the latest technologies and innovations, and it forms the foundation for supporting our customers in the areas of digital assets.”
The license acceptance is significant because it gives Commerzbank the groundwork to “build up a broad range of digital asset services.” They have, therefore, emphasized that using their custody platform reliably is the first step. Nevertheless, it keeps up the bank’s “emphasis on crypto assets.”
According to the bank, its current first move is to set up a “secure and reliable” platform that completely conforms to local laws and supports its institutional clients by offering blockchain-based crypto custody services.
Commerzbank’s announcement comes after similar news from Germany, where DZ Bank, the country’s third-largest bank, disclosed on November 6 that it offered cryptocurrency custody services to institutional investors.
The innovative infrastructure that DZ Bank has developed for handling and archiving digital financial assets was revealed. Additionally, it stated that to permit institutional investors and individual clients to purchase cryptocurrency, it applied for a crypto custody license in June 2023.
After running a dedicated local subsidiary for three years, the US cryptocurrency custody company BitGo was granted permission by the German Federal Financial Supervisory Authority (BaFin) to increase its adherence to local laws in September.
Over the past year, Germany’s crypto scene has experienced tremendous growth. With the introduction of its wpNex cryptocurrency trading platform in March, the Deutsche WertpapierServiceBank (Dwpbank) opened up access to the digital asset market for 1,200 German banks and savings institutions.