Commerzbank Partners with Crypto Finance for Digital Asset Integration in Corporate Banking

Commerzbank has partnered with Deutsche Börse subsidiary Crypto Finance to launch a new service offering cryptocurrency trading and custody solutions for its corporate clients.

The partnership aims to provide Commerzbank’s customers with regulated access to digital assets, starting with Bitcoin and Ether, the bank said in a Wednesday press release.

“The joint service will initially focus on bitcoin and ether, targeting selected existing Commerzbank corporate clients in Germany,” the announcement said.

Commerzbank to Handle Custody

Under the arrangement, Commerzbank will handle the custody of digital assets.

Meanwhile, Crypto Finance, a Swiss-based company regulated by FINMA and licensed by Germany’s BaFin, will manage the trading services.

“Our digital asset offering enables corporate clients to seize the opportunities presented by Bitcoin and Ether for the first time,” Gernot Kleckner, Divisional Board Member for Capital Markets in the Corporate Clients segment at Commerzbank, said.

“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 the Deutsche Börse Group.”

This isn’t Commerzbank’s first foray into the world of blockchain and digital assets.

The bank has an ongoing partnership with Deutsche Börse through the 360x joint venture, which focuses on the tokenization of real estate, 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, are also preparing to offer crypto services to corporate clients.

Moreover, in April, Germany’s leading federal bank, Landesbank Baden-Württemberg (LBBW), collaborated with Bitpanda to provide cryptocurrency custody services, expected to launch later this year.

New partnership alert: Bitpanda x LBBW 🤝

Landesbank Baden-Württemberg, Germany's largest federal state bank will enhance their digital asset offering in partnership with Bitpanda!

Bitpanda Technology Solutions provides LBBW with an "Investment-as-a-Service" infrastructure in… pic.twitter.com/hIwNXp9Wp4

— Bitpanda (@Bitpanda_global) April 15, 2024

Last year, Swiss crypto infrastructure company Taurus collaborated with Deutsche Bank to establish cryptocurrency custody services alongside tokenized offerings for its clientele.

Deutsche Bank has been ramping up its involvement in the crypto space over the last few years.

It applied for a digital asset custody license from Germany’s financial watchdog in June 2023, as part of its ongoing strategy to provide its clients with access to cryptocurrency markets and assets.

Germany Leads Crypto Adoption in Europe

As reported, Western Europe has emerged as a leading region in global crypto adoption, attracting a substantial number of daily traders, ranging from 1.2 million to 1.5 million individuals.

Germany and France are at the forefront of activity in the region, while Austria has experienced the most significant yearly growth, witnessing a remarkable 70% surge in users.

Notably, Gen Z and Millennials are at the forefront of cryptocurrency adoption in Europe, according to a YouGov research commissioned by crypto exchange Bitpanda.

The survey analyzed five countries, including Switzerland, Austria, France, Germany, and Italy.

The survey identified Switzerland as the leading nation in digital currency ownership, with 23% of its population owning digital currencies.

This is followed by Austria at 18% and France at 14%. Germany and Italy lag behind with 11% and 9%, respectively.