Commerzbank has partnered with Deutsche Börse’s Crypto Finance subsidiary to launch a new service that provides cryptocurrency trading and custody solutions for its corporate clients.
The partnership aims to give Commerzbank clients controlled access to digital assets, starting with Bitcoin and Ether, the bank said in a press release on Wednesday.
“The joint service will initially focus on Bitcoin and Ether, targeting selected commercial clients of Commerzbank in Germany,” the statement said.
Commerzbank will handle the detention
According to the agreement, Commerzbank will undertake custody of the digital assets.
Meanwhile, Crypto Finance, a Swiss company regulated by FINMA and licensed by Germany’s BaFin, runs the trading service.
“Our digital asset offering enables commercial clients to take advantage of the opportunities offered by Bitcoin and Ether for the first time,” said Gernot Kleckner, Member of the Capital Markets Division in the Customer Division Commerzbank Commerce.
“Our joint solution represents the highest level of security in the trading and custody of crypto assets, which is also a standard we also share with Deutsche Börse Group.
This is not Commerzbank’s first foray into the world of blockchain anddigital assets.
The bank has an ongoing collaboration with Deutsche Börse through the joint venture 360x, which focuses on real estate signage, art and music.
Commerzbank is also part of the Commercial Bank Money Token project, which explores tokenized deposits.
The move comes as other German banks, including LBBW and DZ Bank, also prepare to offer crypto services to corporate clients.
Moreover, in April, Germany’s leading federal bank, Landesbank Baden-Württemberg (LBBW), partnered with Bitpanda to offer a cryptocurrency custody service, which is expected to launch later this year.
Last year, Swiss crypto-infrastructure company Taurus partnered with Deutsche Bank to set up a cryptocurrency custody service alongside tokenized payments for its clients.
Over the last few years, Deutsche Bank has been increasing its presence in the crypto space.
It has applied for a digital asset custody license from Germany’s financial watchdog by July 2023 as part of its ongoing strategy to give its clients access to cryptocurrency and commodity markets.
Germany is leading crypto adoption in Europe
Western Europe has reportedly become the leading destination for global cryptocurrency adoption, attracting the largest number of daily traders, ranging from 1.2 million to 1.5 million people.
Germany and France are leading the way in activity in the region, while Austria experienced the strongest year-on-year growth, seeing an impressive 70% increase in users.
Notably, Gen Z and Millennials are at the forefront of cryptocurrency adoption in Europe, according to a YouGov survey commissioned by crypto exchange Bitpanda.
The study examined five countries, including Switzerland, Austria, France, Germany and Italy.
The survey showed Switzerland as the leading country in digital currency ownership, with 23% of its population owning digital currency.
It is followed by Austria at 18% and France at 14%. Germany and Italy are behind at 11% and 9% respectively.