Commerzbank has achieved a significant milestone by becoming the first full-service commercial bank in Germany to be granted a crypto custody license.
Introduced in 2020, Germany’s new licensing regime for crypto services, coupled with an amendment to the EU’s Money Laundering Directive, aimed to encourage regulated entities to enter the crypto market.
Commerzbank, which submitted its license application in April 2022, has yet to disclose the specific technology stack for this venture. However, the bank emphasizes its commitment to establishing a secure and compliant platform supporting institutional clients by providing custody for crypto assets based on blockchain technology.
This move reflects a thawing interest in the crypto market among traditional banks, signaling a departure from the recent ‘crypto-winter.’ A research note from Deutsche Bank recently highlighted cryptocurrencies and ether as emerging long-term asset classes that banks would be wise not to overlook.
Dr. Jörg Oliveri del Castillo-Schulz, Commerzbank COO, stated, “Now that we have been granted the license, we have achieved an important milestone. This highlights our ongoing commitment to applying the latest technologies and innovations, forming the foundation for supporting our customers in the areas of digital assets.”