DekaBank has been granted a crypto custody license by Germany’s financial regulator BaFin and the European Central Bank (ECB). The license allows the bank to handle cryptocurrency custody, a significant step in its expansion into digital assets, reports Ledger Insights.
DekaBank is one of the few German banks to receive a crypto custody license. Commerzbank became the first to secure this approval last year, while others, such as DZ Bank, remain without one. Most of the 11 other licenses issued by BaFin have gone to crypto-specific firms, including the digital asset custody arm of Hauck Aufhäuser Lampe Privatbank.
Unlike licenses granted to crypto companies, the licenses for DekaBank and Commerzbank are regulated under the stricter Banking Act (KWG).
Expanding digital services
This is the second license DekaBank has secured this year. In July, it became a licensed crypto securities registrar, allowing it to handle blockchain-based digital securities in Germany without relying on a central securities depository.
DekaBank has also been active in developing blockchain infrastructure. It founded the SWIAT platform for digital securities, which has drawn investors like Standard Chartered and LBBW. In September, Siemens issued a €300 million digital bond on the platform, signaling the growing use of blockchain in corporate finance.
European scope under MiCAR
With the crypto custody license, DekaBank can now offer services across Europe under the EU’s upcoming MiCAR crypto regulation. While the custody license is not required for handling digital securities, it is necessary for managing cryptocurrencies.
