Commerzbank has made history by becoming the first full-service commercial bank in Germany to receive a crypto custody license.
In 2020, Germany introduced a new licensing framework for crypto services, accompanied by amendments to the EU’s Money Laundering Directive, aimed at encouraging regulated institutions to enter the crypto space. Commerzbank submitted its application for the license in April 2022, with German competitor Deutsche Bank following in June of this year.
While Commerzbank has not disclosed specific details regarding the technology stack for its crypto custody services, it has expressed a commitment “to establish a secure and reliable platform with full regulatory compliance to support its institutional clients by providing custody for crypto assets based on blockchain technology.”
This move signifies a renewed banking interest in the cryptocurrency market following a prolonged downturn. A recent report by Deutsche Bank has characterized cryptocurrencies, including ether, as emerging long-term asset classes that banks should not overlook.
Dr. Jörg Oliveri del Castillo-Schulz, COO of Commerzbank, remarked, “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 a foundation for supporting our customers in the areas of digital assets.”