Leading German bank Commerzbank has received a crypto custody license from government regulators.
Making the announcement in a press release, Commerzbank stated that the crypto custody license now makes it the first full-service German bank to be approved for this particular service.
Commerzbank AG has received a crypto custody license, providing more evidence that European banks are growing warmer toward the asset class. pic.twitter.com/k4NMtscQfZ
— Andy's Hideaway (@AndysHideaway) November 15, 2023
The license gives the bank the needed legal coverage to craft a broad range of digital asset services, with a particular focus on cryptocurrencies.
However, securing the license is just the first stepping stone in a long path. According to Commerzbank, it would work on establishing a secure and reliable platform with full regulatory compliance.
This platform will support its institutional-based clients and enable them to access crypto custodial services for assets based on blockchain technology.
Speaking on the milestone event, Commerzbank’s Chief Operating Officer, Dr Jörg Oliveri del Castillo-Schulz, stated that the license approval was a significant milestone in the bank’s quest to craft crypto-native services for its teeming customers.
Oliveri also noted that the bank is committed to exploring new technologies like crypto assets and blockchain that give its customers an edge in their wealth creation journey.
Commerzbank joins other entities in Germany that have recently received approval from regulators for digital asset-related services.
On October 24, 2023, US cryptocurrency custody company BitGo secured a crypto custody business license from the German Federal Financial Supervisory Authority (BaFin).
Following closely a few days later, Germany’s third-largest commercial bank, DZ Bank, announced the launch of its digital assets custody platform on November 2.
Although its crypto custody license is still in the works with the German regulator, DZ Bank is already providing institutional investors access to crypto asset securities, including crypto bonds from Siemens, which it launched six months prior.
With optimistic anticipation for regulatory approval from BaFin, DZ Bank looks forward to expanding its offerings to include direct purchases of cryptocurrencies like Bitcoin and Ethereum in the future.
US Still at War With Crypto as Global Powers Embrace Decentralized Economy
While Europe is gearing up for a new face to the global economy, the United States is focusing on the need to regulate cryptocurrencies through enforcement.
The US Securities and Exchange Commission (SEC) has been the most vocal, actively pursuing legal action against numerous top crypto businesses and firms for offering cryptocurrencies as securities.
And guess which tokens are illegal securities offerings. Spoiler alert it includes Solana and Cardano.
pic.twitter.com/wMdICfIE3j
— Stephen Diehl (@smdiehl) June 5, 2023
Nonetheless, this has not quenched the fervor with which several legacy companies have jumped into the crypto space.
Trillion-dollar asset management firms like BlackRock, Valkyrie, Ark Invest, WisdomTree, Grayscale, and several others are closely working on offering crypto exposure to institutional clients through an exchange-traded fund (ETF).
Reports show that there is growing pressure for the SEC, led by former crypto and blockchain professor at MIT Gary Gensler, to approve one.
Market analysts are putting the approval date for a Bitcoin spot ETF in early January 2024 for at least three asset management firms.
Okay, we're nearing in on deadline dates for 3 spot #Bitcoin ETF applications. I want to get ahead of it because there's a pretty good chance we'll see delay orders from the SEC. Delays WOULD NOT change anything about our views & 90% odds for 19b-4 approval by Jan 10, 2024 pic.twitter.com/LE7sOlHAHM
— James Seyffart (@JSeyff) November 14, 2023
Making this claim, Bloomberg’s ETF and crypto analyst James Seyffart said there is a 90% chance that these Bitcoin spot ETF applications would be approved on the stated date.
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