[NEWS] Germany's Commerzbank obtains cryptocurrency custody license

Commerzbank, a megabank based in Frankfurt, Germany, announced on the 15th that it has obtained a custody license in Germany. The license under the German Banking Act (KWG) will enable the bank to launch a wide range of digital asset services focusing on crypto assets (virtual currencies).

The bank is the first bank in Germany to handle crypto assets.

Commerzbank is the fourth largest megabank in Germany, with total assets of 534 billion euros (approximately 87.27 trillion yen) as of the end of September last year. It has an estimated 26,000 corporate clients and serves approximately 11 million individual and small and medium-sized business clients in Germany.

The acquisition of this license indicates that the bank may be able to expand its crypto asset services in line with the increasing demand for safe and compliant crypto asset custody.

According to a Commerzbank spokesperson, the bank plans to initially offer custody services for Bitcoin (BTC) and Ethereum (ETH) to institutional and corporate clients.

Commerzbank CEO Jörg Oliveri del Castillo-Schulz emphasized the importance of this approval for the bank, saying: "With the license, we have achieved an important milestone. This demonstrates our ongoing commitment to applying the latest technologies and innovations. We will form a platform to support our clients in the field of digital assets."

Comerzbank first revealed its interest in services in the cryptocurrency space in April last year. It then applied for a cryptocurrency custody license with Germany's financial supervisory authority BaFin.

Growing interest in crypto assets in Germany

Comerzbank is the first bank to obtain a cryptocurrency license, but it is not the only bank in Germany interested in cryptocurrency custody services.

In September this year, Deutsche Bank's Paul Maley said that the bank wanted to offer custody services for "selected cryptoassets and some stablecoins" to corporate and institutional investors. In fact, Deutsche Bank has also applied for a cryptocurrency custody license with BaFin.

BaFin also granted a license to crypto custody firm BitGo earlier this year, with BitGo's Matt Ballensweig saying at the time that it would "expand our reach to different segments of the market."

Germany has seen a lot of progress in institutional investors entering the crypto space recently. Blockchain funding in Germany has increased 3% this year. Major blockchain events have also been held throughout the year.

Reference:Announcement
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