Commerzbank, a leading German bank, has recently obtained a crypto custody license from government regulators. This milestone makes Commerzbank the first full-service German bank to be approved for such a service.
The crypto custody license provides Commerzbank with the necessary legal coverage to offer a wide range of digital asset services, with a specific focus on cryptocurrencies. However, obtaining the license is just the beginning of Commerzbank’s journey. The bank aims to establish a secure and reliable platform that complies with all regulations, catering to its institutional-based clients and offering them access to crypto custodial services based on blockchain technology.
Commerzbank’s Chief Operating Officer, Dr Jörg Oliveri del Castillo-Schulz, stated, “The license approval is a significant milestone in our pursuit of providing crypto-native services to our valued customers. We are committed to exploring new technologies like crypto assets and blockchain to give our customers an edge in their wealth creation journey.”
Commerzbank is not alone in the pursuit of digital asset-related services in Germany. BitGo, a US cryptocurrency custody company, secured a crypto custody business license from the German Federal Financial Supervisory Authority (BaFin) on October 24, 2023. Similarly, DZ Bank, Germany’s third-largest commercial bank, launched its digital assets custody platform on November 2, providing institutional investors with access to crypto asset securities.
While Europe progresses towards embracing the global economy’s new face, the United States focuses on regulating cryptocurrencies through enforcement. The US Securities and Exchange Commission (SEC) has been actively taking legal actions against top crypto businesses and firms offering cryptocurrencies as securities. Despite these regulatory challenges, several legacy companies are entering the crypto space. Asset management firms like BlackRock, Valkyrie, Ark Invest, and WisdomTree are working towards offering institutional clients exposure to cryptocurrencies through exchange-traded funds (ETFs).
Bloomberg’s ETF and crypto analyst James Seyffart predicts that there’s a 90% chance of approval for Bitcoin spot ETF applications by early January 2024.
Overall, the crypto industry is witnessing significant developments and regulatory advancements globally. Commerzbank’s crypto custody license sets a precedent for other German banks to follow suit, while the US market awaits regulatory approval for Bitcoin spot ETFs.
