Germany’s banking regulator BaFin has issued a crypto custody licence to Commerzbank, making it the first full-service bank to have such a licence in Germany.
An announcement from Commerzbank gave few details on the technology involved, other than to say it would be a fully regulated platform based on blockchain technology.
Commerzbank COO Joerg Oliveri del Castillo-Schulz described the licence award as “an important milestone” and said that the planned crypto custody platform would “form the foundation for supporting our customers in the areas of digital assets”.
BaFin introduced a new licensing regime for crypto service providers in 2020, along with an amendment to its anti-money laundering rules, to encourage more regulated firms to enter the crypto market.
Commerzbank applied for such a licence back in April 2022, by which time BaFin had only approved four out of 25 applications from firms looking to enter the crypto custody market.
Germany’s biggest bank, Deutsche Bank, applied for a crypto custody licence in June.