Commerzbank, a major German bank, has successfully obtained a digital currency custody license from the German Federal Financial Supervisory Authority (BaFin), marking a significant milestone in the banking industry. This development positions Commerzbank as the first “full-service” bank to secure such a license, allowing it to offer a range of digital asset services to institutional investors.
The license approval follows a thorough examination by BaFin and is the initial step in a series of initiatives aimed at exploring digital asset offerings for the bank. Commerzbank plans to launch a new digital platform tailored for institutional clients to meet their custody needs. However, the platform is subject to further inspection by German regulators before it undergoes a mainstream launch.
Jorg Oliveri del Castillo-Schulz, Commerzbank’s COO, emphasized the significance of this achievement, stating, “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, and it forms the foundation for supporting our customers in the areas of digital assets.”
Commerzbank’s entry into the digital asset space is expected to boost adoption, given its extensive reach. The bank serves nearly 11 million small-business and private customers in Germany and is responsible for settling over 30% of the country’s foreign trade transactions.
The move aligns with a broader trend in the German banking sector, as institutions like DZ Bank and Deutsche WertpapierService Bank (Dwpbank) have recently introduced digital asset custody platforms for institutional investors, leveraging blockchain technology. German financial regulators are increasingly warming up to digital assets, evident in the approvals granted to traditional financial institutions.
Despite the positive stance, German regulators have emphasized the importance of compliance with existing regulatory frameworks. In 2022, BaFin raised concerns about anomalies in Coinbase’s corporate structure in Germany, urging the exchange to ensure proper business organization. The regulatory body has called for a global approach to regulating digital assets in the wake of high-profile industry collapses, emphasizing the need for a worldwide solution. BaFin Chair Mark Branson stated, “Now is the time for serious cryptocurrency regulation.”
