German bank Commerzbank is the first “full-service bank” to receive a crypto custody license, according to a press release on Wednesday.
The bank was granted the license under the German Banking Act (KWG).
Commerzbank can now offer digital asset services, and the bank plans 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.”
“We have achieved an important milestone. 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,” said Jörg Oliveri del Castillo-Schulz, chief operating officer of Commerzbank.
Commerzbank first revealed its interest in crypto services back in April of 2022. It applied for a license with BaFin back in January of last year.
While Commerzbank is the first, it’s not the only bank in Germany interested in crypto custody. Back in September, Deutsche Bank’s Paul Maley told Blockworks that it wants to offer corporate and institutional clients custody of “selected cryptocurrencies and some stablecoins.”
It partnered with Swiss crypto firm Taurus to provide custody and tokenization services for institutional clients.
Deutsche Bank applied to provide crypto custody services with the German financial regulator back in June.
BaFin also granted crypto custody firm BitGo a license earlier this month, with BitGo’s Matt Ballensweig telling Blockworks that the firm moving forward is seeking to “broaden our reach into different segments of the market.”
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