Commerzbank Applies for Crypto License

After the German commercial bank (Commerzbank) applied for license encryption earlier this year, it will become the country’s first major bank to provide encryption currency if they are approved to get the operation license.

German bank Commerzbank also appears to be strengthening its crypto offering after applying for a crypto license earlier this year in the first quarter. A spokesman for the bank confirmed on April 14th.

Bernd Reh, senior spokesman for Commerzbank stated that:

“We entered into a cooperation with Deutsche Börse and Fin-Tech 330x in spring 2021. In addition, we are pursuing our own digital asset strategy and are also planning our own offerings for our customers in the coming years. We have applied for a license from the Bafin for the safekeeping of crypto assets. The future offer is initially aimed at institutional customers.”

Commerzbank, founded in 1870, is one of Germany’s three original banks. The bank hopes to expand the business of custody and trading of non-physical assets and build its own digital ecosystem. It is estimated that at least 25 licence applications are awaiting a decision from the Federal Financial Supervisory Authority.

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Deutsche Börse and Commerzbank invest in new digital asset venture

German securities marketplace Deutsche Boerse and major bank Commerzbank have jointly invested in a new holding company which plans to focus on blockchain technology and digital assets.

Deutsche Boerse announced Thursday that the company and Commerzbank entered a strategic partnership with fintech firm 360X to develop new blockchain-based digital marketplaces and existing real asset classes like art and real estate.

A representative from Deutsche Boerse confirmed to Cointelegraph that Deutsche Borse invested 10 million euros ($12 million) for a stake of about 50% in 360X, while Commerzbank owns a lower double-digit stake.

A Deutsche Boerse spokesperson noted that today’s announcement marks the official launch of 360X as a company, with Deutsche Börse and Commerzbank capitalizing 360X as a new firm as partners. Other participants are the 360X management and other private investors, the representative said.

According to the announcement, 360X will focus on illiquid assets, initially art and real estate. The platform is also intended to support tradeable digital collectibles known as non-fungible tokens, or NFTs. “Since 360X aims to build new marketplaces and ecosystems for existing real assets, such as art and real estate, it is aimed at supporting the trading of NFTs,” a Deutsche Boerse spokesperson said. 360X is set up as a highly scalable model so further asset classes will follow in the future, the representative added.

As previously reported, Deutsche Boerse and Commerzbank have been closely collaborating in the blockchain industry for years. In 2019, the companies jointly piloted a transaction settlement of post-trade securities using distributed ledger tech and digital tokens. Deutsche Boerse and Commerzbank also worked together to carry out transactions using HQLAX’s blockchain-based security lending platform.