YEREVAN (CoinChapter.com) — German banking giant Commerzbank has received a crypto custody license from local regulators. This makes Commerzbank the first full-service bank in Germany to obtain such a license under the German Banking Act (KWG).
Commerzbank has a crypto custody license – what does it mean?
With this license, Commerzbank can now offer custody services for crypto assets and plans to introduce further digital asset services. Dr. Jörg Oliveri del Castillo-Schulz, Commerzbank’s COO, remarked that this development is a significant milestone.
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.
he commented.
The bank officials also stated that the institution’s initial focus will be creating a secure and reliable platform that aligns with local regulations, aiming to provide crypto custody services to its institutional clients through blockchain technology.
Notably, the bank’s stock price has increased since 2020, reaching $10.6 on Nov 15, 2023.
Commerzbank is not the first financial institution in Germany to delve into crypto.
DZ Bank also Lures Customers with Crypto
DZ Bank announced on Nov. 2 that it would offer a digital custody platform to its institutional investors. With over 300 billion euros in assets, DZ Bank is the second largest bank in Germany by asset size and the central institution for around 800 cooperative banks and their nearly 8,500 branch offices.
The financial institution noted that the new service includes a crypto bond from Siemens, which Union Investment and DZ Bank subscribed to six months ago and could now be transferred to self-custody.
Meanwhile, the bank had previously been involved as processor and custodian in the first external transaction of crypto fund shares from Bankhaus Metzler, a private banking company in Frankfurt. Since both cases fall within the Electronic Securities Act (eWpG) scope, custody is already possible with the existing licenses.
However, to comply with the local crypto regulations, DZ Bank also applied for a specific crypto custody license from the Federal Financial Supervisory Authority (BaFin) in June, the same license Commerzbank obtained on Nov 15. Additionally, parallel to the solution for institutional customers, the bank is working on an offer allowing private customers to invest directly in cryptocurrencies.
Unlike Commerzbank, DZ Bank stock lost nearly 10% of its price per share in the previous two years. The lean towards crypto could be a way to remedy the situation by luring more customers with diverse service offers.
