Commerzbank, the second-largest bank in Germany, partly owned by the government, might become the country’s first crypto custody bank.
The financial institution has applied for a crypto custody license from the Federal Financial Supervisory Authority, known as BaFin, to offer crypto custody services. Upon receiving approval from German regulation authorities, Commerzbank will provide its clients with commercial services for investment products related to cryptocurrencies.
By working with crypto assets, Commerzbank aims to help shape emerging digital ecosystems, especially those concerning the custody and trading of non-physical assets. Bernd Reh, the Senior Spokesman at Commerzbank, confirmed the bank’s interest in the crypto industry, stating that the firm is taking its first steps toward digital asset adoption:
“We are carrying out our own digital asset strategy and are also planning our own offerings for our clients in the coming years,”
With over €462 million under management, and 28,000 groups of corporate clients, Commerzbank’s new crypto custody division could attract a larger number of investors to the crypto market.
Nevertheless, Commerzbank still has to wait for approval from regulators. As it stands, at least 24 other companies have applied for a BaFin crypto custody license and are still on the waiting list.
On the Flipside
- Only four companies that applied for a BaFin license have been approved by German authorities so far – Coinbase, Tangany, Kapilando, and Upvest.
- The German stock market, Deutsche Boerse, offers investors exposure to digital assets through exchange-traded notes (ETN), guaranteed physically in cryptocurrencies like Bitcoin and Ethereum.