The German banking giant Commerzbank appears to be strengthening its crypto offering as it applied for a cryptocurrency license earlier this year.
The Commerzbank spokesperson told local media outlet Börsen-Zeitung on April 14 that it applied for a license to provide crypto-cash custody services in the first quarter of 2022. If approved, the company would be able to offer crypto exchange services in addition to securing crypto-assets for clients.
With over 18 million customers and over 70,000 institutional clients, Commerzbank has the potential to offer cryptocurrency to its institutional clients.
The Federal Financial Supervisory Authority known as the BaFin, has been approved by the German Federal Financial Supervisory Authority (BaFin) to offer cryptocurrency services starting January 1, 2020.
An application like this was submitted by a Portuguese bank last week. One of Germany’s largest banks is now thinking about offering custody and exchange services for cryptocurrencies. While traditional and large banks have shied away from cryptos in the past, we are now seeing them adopted by even the most conservative players in banking.
Mikkel Morch, Executive Director – ARK36 Crypto Hedge Fund
Currently, only four companies have approval, but BaFin states it has over 25 applications pending from firms wishing to operate crypto custody businesses.
In recent days, many banks have taken steps in the direction of integrating crypto into their operations where it is possible, says Mikkel Morch, executive director at crypto hedge fund ARK36.
