Germany is once again proving its strong position in the virtual asset market. This time, thanks to Commerzbank, which has applied for a license to provide crypto services.
The first such move by a major bank
A spokesperson for the popular and one of the largest banks in Germany, speaking to local media on April 14, confirmed that the institution had applied to BaFin for a cryptocurrency license. According to available information, the application was submitted to the German regulator back in the first quarter of this year. Its approval will entitle Commerzbank to offer crypto asset exchange, storage and protection services to a wide range of customers. In the initial phase, these will most likely be institutional customers.
Multiple applications await decision
Commerzbank is a financial institution serving more than 18 million individual customers and 70,000 institutional customers. This gives it a solid position in the German market, which is considered to be conducive to innovation and therefore conducive to cryptocurrencies.
The Federal Financial Supervisory Authority (BaFin), as of January 1, 2020, is responsible for issuing licenses for financial institutions to operate in the crypto space. So far, BaFin has issued 4 such licenses, while another 25 are still waiting for a final decision. One of the lucky ones with the green light from the regulator is Coinbase Germany, which received it in June 2021.
Commerzbank and blockchain
For Commerzbank, the current situation is not the first time it has come into contact with cryptocurrencies and blockchain technology. Already in 2018, the bank had the opportunity to conduct some of its first transactions on a collateral lending platform and use distributed ledger technology (DLT) to do so. And in August 2021, the bank partnered to create blockchain-based digital marketplaces for asset classes like art and real estate.
Commerzbank’s move to obtain a cryptocurrency license is another step in the adoption of cryptocurrencies within Germany, but more importantly, it is a strong development for the bank itself, which likely recognizes the pace of global change in the financial world and wants to become a leader in its sector.
Picture taken from: https://www.kurzy.cz/zpravy/408165-commerzbank-chce-propustit-9000-lidi-petinu-a-zrusit-dividendu/