FRANKFURT, Germany—Commerzbank has become the first full-service commercial bank in Germany to be awarded a crypto custody license.
Germany introduced a new licensing regime for crypto services in 2020 along with an amendment to the EU's Money Laundering Directive, in order to encourage regulated firms to enter the crypto market, Finextra reported.
According to the report, Commerzbank first applied for a license in April 2022. German rival Deutsche Bank followed suit in June this year, Finextra said.
Finextra noted Commerzbank has yet to release details of the technology stack for the venture, but says that it aims "to establish a secure and reliable platform with full regulatory compliance to support its institutional clients by providing custody for crypto assets based on blockchain technology.”
The report added, “The initiative recognizes the de-thawing of banking interest in the market following the recent 'crypto-winter'. A recent research note by Deutsche Bank painted cryptocurrencies and ether as new long-term asset classes that banks would be unwise to ignore.”
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