Commerzbank AG – the fourth largest bank in Germany – has received its Crypto Custody License after unveiling plans to break into digital asset safekeeping almost two years ago.
This makes Commerzbank the first full-service bank in Germany to receive the license.
The bank’s new license permits it to introduce a “wide range” of new digital asset services, particularly those related to cryptocurrency assets, according to a press release on Wednesday.
Creating a trustworthy, legally acceptable system for its institutional customers to handle their digital currencies will be its primary objective.
Dr. Jörg Oliveri del Castillo-Schulz, the bank’s chief operating officer, says that receiving the license is a “significant step” for the organization’s entrance into the market.
In Germany, Commerzbank offers services for around 11 million consumer and small company clients alongside approximately 26,000 corporate clients. As of the third quarter of this year, its assets were valued at €510 billion ($553 billion), accounting for around 30% of the country’s global trade.
The German Savings Bank Association, or Sparkasse, has indicated that it would like to introduce cryptocurrency wallets for its customers, and that was when the bank first declared in December 2021 that it was working “intensively” on the topic of crypto asset trading and saving. Earlier that year, the company partnered with Deutsche Bank to establish a market for tokenized real estate and art.
Commerzbank’s foray into cryptocurrency custody is part of a pattern where European banks are tentatively experimenting with digital asset management. The French cryptocurrency division of Societe Generale was granted a Digital Asset Service Provider (DASP) license in July, enabling users to store and exchange cryptocurrency on the platform.
In addition to its digital asset issuing business, , the British banking powerhouse HSBC said earlier this month that it would be partnering with the Swiss cryptocurrency company Metaco to offer crypto custody starting in 2024.