Germany-based Commerzbank AG has received a cryptocurrency custody licence from the Federal Financial Supervisory Authority (BaFin). Commerzbank AG has successfully secured a cryptocurrency custody license in Germany, making it the inaugural full-service bank in the country to attain such authorization, as disclosed in a recent statement.

The granted license enables the Frankfurt-based global bank to provide a comprehensive suite of digital asset services, with a specific focus on cryptocurrency assets. The acquisition of a crypto license from Germany's financial markets regulator, BaFin, is notable given the regulatory caution in this domain. Commerzbank aims to leverage this licence to establish a secure custody platform dedicated to digital assets.

The institution views this achievement as a significant step in the right direction, underscoring its commitment to integrating cutting-edge technologies and innovations. In the official press release, representatives from Commerzbank AG emphasised the license as a foundational element for supporting customers in the realm of digital assets. Commerzbank’s initial application Commerzbank initially announced its application for a crypto custody licence in April 2022.

At the time, the bank revealed its plans to offer custody services primarily to institutional customers. According to a Commerzbank representative, the bank revealed its intention to help shape emerging digital ecosystems regarding custody and trading in non-physical assets. The bank also entered a cooperation with Deutsche Börse and Fin-Tech 360x in Spring 2021.

In addition, the representative added that the bank was pursuing its own digital asset strategy and was planning its own offerings for their customers in the coming years. At the time, Commerz Ventures, the venture capital division of Commerzbank, had already launched its third fund in 2022, which raised EUR 300 million. The investment focused on companies from areas such as climate fintech, insurtech, and startups working with decentralised finance (DeFi).

While Commerzbank now stands as the first German full-service bank to secure a crypto custody license, it is not the sole financial institution in Germany expressing interest in this sector. In September, Deutsche Bank revealed its intention to extend custody services for ‘selected cryptocurrencies and some stablecoins’ to its corporate and institutional clients. Deutsche Bank initiated the process of obtaining approval from the German financial regulator for providing crypto custody services back in June.

Concurrently, BaFin, the regulatory authority, recently granted a crypto custody license to BitGo earlier in November 2023. .