German banking major Commerzbank has applied for a local crypto license this year, according to a statement released by the bank. This is the first time that a major German bank has moved into the cryptocurrency space.
A spokesperson for Commerzbank said that the second-largest bank in Germany is eager to help in shaping the emerging digital ecosystem. They have especially moved in towards the trading and custody of non-physical resources.
Commerzbank communicated that they had entered into a tie-up with Deutsche Borse and Fin-Tech 330x during the spring of 2021. Accordingly, the bank is keenly following its digital asset strategy while also planning new offerings for customers soon.
Commerzbank said that they have gone ahead for clearance from BaFin for the safeguarding of crypto assets. Bernd Reh, a senior spokesperson, said that Commerzbank has aimed its initial offering at institutional customers.
The news was first reported by Borsen-Zeitung, a local media entity. It said that Commerzbank confirmed on the 14th of this month that it made an application for the license of crypto custody in the 1st quarter of this year.
The Move Towards The Crypto Market By Commerzbank Has The Backing Of The Government
The application by Commerzbank is for permission to offer various exchange services and also the protection and custody of multiple crypto assets.
The German bank was in a way involved in various blockchain projects even in 2018. It carried out some initial transactions on a distributed ledger technology (DLT) secure lending platform in 2019 with other banking majors.
As recently as 2021, Commerzbank tied up with firms to develop digital marketplaces based on blockchain for existing classes of assets that include real estate and art.
The German bank is the 2nd-largest license-listed bank in Germany, and it is partly government-owned. The German government has introduced new laws that encourage banks in the country to over their crypto services. It requires any businesses seeking crypto services in Germany to seek clearance from BaFin, the national financial authority of Germany.
Mikkel Morch of ARK36, the alternative investment fund dealing exclusively in Bitcoin and other digital assets, said that this move reinforces the move within the traditional banking system to enter the market of crypto services and gain a competitive edge in this field.
