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Commerzbank granted crypto custody license in Germany

November 15, 2023 Coin Telegraph

The German bank Commerzbank is the first full-service bank in the country to receive a crypto custody license from local regulators.

The German bank Commerzbank has been granted a crypto custody license by local regulators, according to an announcement released by the lender on Nov. 15.

Commerzbank says it is the first “full-service” German bank to be granted this license in the country under the legal framework of the German Banking Act (KWG). This allows it to offer custody of crypto assets and will enable it to offer “further digital asset services.”

Dr. Jörg Oliveri del Castillo-Schulz, the chief operating officer of Commerzbank, said that acquiring the license is 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.”

The bank says its first step now is to establish a platform that is both “secure and reliable” and fully complies with local regulations while supporting its institutional clients through crypto custody services via blockchain.

Cointelegraph reached out to Commerzbank for further information on the development.

This development from Commerzbank follows similar news out of Germany, as its third-largest bank, DZ Bank, revealed its crypto custody offerings for institutional investors on Nov. 6.

DZ Bank announced its new platform for processing and storing digital financial instruments. It also said it applied for a crypto custody license in June of 2023 to allow institutional investors and private customers to buy cryptocurrencies.

In September, the United States crypto custody firm BitGo received a license from the German Federal Financial Supervisory Authority (BaFin) to expand its compliance with local regulations after three years of operating its dedicated local subsidiary.

The crypto-landscape in Germany has gained significant momentum over the last year. In March, the Deutsche WertpapierServiceBank (Dwpbank) launched its wpNex crypto trading platform that began to offer 1,200 banks and savings banks in Germany access to the digital asset industry.

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German banking giant Commerzbank applies for crypto license

April 21, 2022 Coin Telegraph

BaFin

A spokesperson for Commerzbank confirmed to local media that it applied for the license with BaFin earlier this year in a first for a major bank in Germany.

One of the largest banking institutions in Germany has confirmed it applied for a local crypto license earlier this year, marking the first time a major bank has made a move toward cryptocurrencies in the country.

A spokesperson from Commerzbank confirmed to local media outlet Börsen-Zeitung on April 14 that it “applied for the crypto custody license in the first quarter of 2022.” If approved it would be authorized to offer exchange services along with custody and protection of crypto-assets.

Commerzbank serves over 18 million customers and over 70,000 institutional clients, and the cryptocurrency offering will reportedly target its institutional client base.

Since Jan. 1 2020 any business wishing to offer cryptocurrency services in Germany must first seek approval from the Federal Financial Supervisory Authority also known as BaFin.

Currently only four companies have approval but BaFin states it has over 25 applications pending from firms wishing to operate crypto custody businesses.

Coinbase Germany was the first to be approved by the regulator in June 2021 and the Berlin based financial technology firm Upvest was most recently approved for a license in March.

Commerzbank has seen involvement in blockchain projects as far back as 2018, and carried out some of the first transactions on a distributed ledger technology (DLT) security lending platform with other major banks the following year.

More recently, in August 2021 the firm entered into a partnership to develop blockchain-based digital marketplaces for existing asset classes such as art and real estate.

Germany introduced a raft of reforms, regulations and further adoption of blockchain technology and cryptocurrencies in 2021.

German investors are also keen on adopting crypto. A March report by Kucoin revealed 44% of Germans are “motivated to invest in cryptocurrencies and “37% of German crypto investors have been trading cryptocurrencies for over a year.”

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Deutsche Börse and Commerzbank invest in new digital asset venture

April 29, 2021 Coin Telegraph

Art

Deutsche Boerse invests $12 million in new holding company 360X to develop blockchain-based digital marketplaces featuring NFTs.

German securities marketplace Deutsche Boerse and major bank Commerzbank have jointly invested in a new holding company which plans to focus on blockchain technology and digital assets.

Deutsche Boerse announced Thursday that the company and Commerzbank entered a strategic partnership with fintech firm 360X to develop new blockchain-based digital marketplaces and existing real asset classes like art and real estate.

A representative from Deutsche Boerse confirmed to Cointelegraph that Deutsche Borse invested 10 million euros ($12 million) for a stake of about 50% in 360X, while Commerzbank owns a lower double-digit stake.

A Deutsche Boerse spokesperson noted that today’s announcement marks the official launch of 360X as a company, with Deutsche Börse and Commerzbank capitalizing 360X as a new firm as partners. Other participants are the 360X management and other private investors, the representative said.

According to the announcement, 360X will focus on illiquid assets, initially art and real estate. The platform is also intended to support tradeable digital collectibles known as non-fungible tokens, or NFTs. “Since 360X aims to build new marketplaces and ecosystems for existing real assets, such as art and real estate, it is aimed at supporting the trading of NFTs,” a Deutsche Boerse spokesperson said. 360X is set up as a highly scalable model so further asset classes will follow in the future, the representative added.

As previously reported, Deutsche Boerse and Commerzbank have been closely collaborating in the blockchain industry for years. In 2019, the companies jointly piloted a transaction settlement of post-trade securities using distributed ledger tech and digital tokens. Deutsche Boerse and Commerzbank also worked together to carry out transactions using HQLAX’s blockchain-based security lending platform.

Commerzbank

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