Commerzbank has obtained a cryptocurrency custody license, marking the first time a full-service German bank has obtained such approval from national regulators, according to a Nov. 15 statement.
The bank was licensed by the German Federal Financial Supervisory Authority and the European Central Bank in accordance with Article 1 Paragraph 1a Sentence 1 No. 6 of the German Banking Act (KWG).
This license allows Commerzbank to expand its digital asset offering. Additionally, the bank intends to establish a secure and compliant platform using blockchain technology for custody services related to crypto assets.
Dr. Jรถrg Oliveri del Castillo-Schulz, COO of Commerzbank, said the license is an important step for the bank's digital asset services ambitions, adding that the bank remains committed to adopting technologies and innovations from Vanguard.
He fixed:
"This highlights our continued commitment to applying the latest technologies and innovations, and forms the basis for supporting our clients in the areas of digital assets."
Commerzbank is a leading German bank serving corporate entities and has a customer base of approximately 11 million small business and corporate clients. It is present in more than 40 countries and contributes significantly to around 30% of Germany's foreign trade.
Germany's pro-crypto stance
Over the past year, Germany has become one of the friendliest crypto regulatory environments in Europe.
A recent study by Chainalysis positioned the nation as the second largest cryptocurrency economy in Europe. At the same time, a 2022 CoinCub ranking claimed that Germany was the most cryptocurrency-friendly country in the world. quoting its regulatory clarity and its solid legal frameworks.
The European country recently introduced regulations allowing companies to issue crypto shares. In addition, the country's regulatory authorities have also formulated several measures designed to protect people under jurisdictions.
These pro-cryptocurrency movements have resulted in several cryptocurrency companies, such as cryptocurrency custodian BitGo, receiving regulatory approval to provide services in the country.
