Germany’s Commerzbank Receives Crypto Custody License

Published: Nov 15, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

Commerzbank AG has been granted a crypto asset custody license, making it the first major German full-service bank to receive regulatory approval for comprehensive digital asset services.

The Frankfurt-based bank announced receiving the license under the German Banking Act on Wednesday. The license enables Commerzbank to launch institutional-grade custody and additional crypto offerings for clients.

Expanding Crypto Adoption Among European Banks

The move highlights growing crypto adoption by mainstream European banks after years of wariness around digital asset risks.

Banks cite rising client demand as a key driver toward expanding crypto services. The licensing also provides transparency into crypto activities for regulators.

Other European lenders making similar moves include Societe Generale, which received France’s inaugural crypto license in July, and German co-operative bank DZ Bank with its recent digital asset custody platform.

As the fourth-largest bank in Germany, Commerzbank’s custody license represents a significant milestone for mainstream crypto adoption in the country’s banking sector.

The bank highlighted the approval will allow it to “build up a broad range of digital asset services, with particular emphasis on crypto assets.”

“This highlights our ongoing commitment to applying the latest technologies and innovations, and it forms the foundation for supporting our customers in the areas of digital assets.”

Dr Jörg Oliveri del Castillo-Schulz, COO of Commerzbank

Commerzbank noted that no other major German full-service bank has so far acquired such comprehensive crypto licensing. The custody availability unlocks institutional-grade crypto access for a large client base.

The licensing follows growing openness to crypto across European finance amid the recovery from 2022’s bear market and ‘crypto winter.’

Commerzbank’s custody services arrive as interest in secure, regulated crypto exposure continues to return across institutional investors and wealthy clients. However, concerns around enforcement gaps persist across European crypto oversight bodies.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.