Commerzbank Secures Crypto Custody License, Paving the Way for Digital Asset Services

Commerzbank, a leading German full-service bank, has made a groundbreaking move in the digital asset sector by becoming the first bank in Germany to receive a Crypto Custody License. This significant achievement positions Commerzbank at the forefront of the rapidly growing crypto market in the country. The bank sees this license, granted under the German Banking Act, as a crucial step in developing a comprehensive range of digital asset services, with a specific focus on crypto assets.

Leading the Way in Digital Asset Services

Commerzbank considers the acquisition of the Crypto Custody License as a monumental step in its journey into the digital asset space. Under the terms of the German Banking Act (KWG), Article 1 Section 1a Sentence 1 No 6, this license empowers Commerzbank to securely manage and store crypto assets.

Commerzbank is a major banking entity in Germany, with total assets amounting to €534 billion by the end of September 2022. The bank serves approximately 26,000 corporate clients and extends its services to nearly 11 million individual and small-business customers in Germany.

Meeting the Growing Demand for Crypto Asset Management Solutions

This license is seen as a crucial enabler for Commerzbank to expand its digital asset services, in line with the increasing demand for secure and compliant crypto asset management solutions. The bank's immediate goal is to establish a secure platform that adheres to regulatory standards for its institutional clients.

The Commerzbank crypto platform will primarily focus on providing custody services for digital assets, leveraging the power of blockchain technology. This initiative is part of the bank's broader strategy to integrate digital innovation into its service offerings, effectively meeting the evolving needs of its client base in the digital economy. Dr. Jörg Oliveri del Castillo-Schulz, the bank's Chief Operating Officer, emphasized the significance of this development.

"Now that we have been granted the license, we have achieved an important milestone," said Commerzbank's COO. "This highlights our ongoing commitment to applying the latest technologies and innovations, forming the foundation for supporting our customers in the areas of digital assets."

What are your thoughts on Commerzbank obtaining its crypto custody license? Share your opinions and insights in the comments section below.

Frequently Asked Questions

What's the advantage of a Gold IRA?

There are many benefits to a gold IRA. You can diversify your portfolio with this investment vehicle. You have control over how much money goes into each account.

You have the option of rolling over funds from other retirement account into a gold IRA. This allows you to easily transition if your retirement is early.

The best thing is that investing in gold IRAs doesn't require any special skills. They're readily available at almost all banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.

However, there are still some drawbacks. The volatility of gold has been a hallmark of its history. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Are you trying to find safety or growth? Only by knowing the answer, you will be able to make an informed choice.

If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce won't be enough to meet all your needs. Depending upon what you plan to do, you could need several ounces.

A small amount is sufficient if you plan to sell your gold. You can even manage with one ounce. These funds won't allow you to purchase anything else.

Is it a good idea to open a Precious Metal IRA

Precious metals are not insured. This is the most important fact to know before you open an IRA account. You cannot recover any money you have invested. All your investments can be lost due to theft, fire or flood.

Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These coins have been around for thousands and represent a real asset that can never be lost. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.

You should choose a reputable firm that offers competitive rates. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.

Remember that you will not see any returns unless you are retired if you open an Account. Remember the future.

How much tax is gold subject to in an IRA

The fair market value of gold sold is the basis for tax. If you buy gold, there are no taxes. It is not income. If you decide to sell it later, there will be a taxable gain if its price rises.

Gold can be used as collateral for loans. When you borrow against your assets, lenders try to find the highest return possible. This usually involves selling your gold. This is not always possible. They may just keep it. They might decide that they want to resell it. The bottom line is that you could lose potential profit in any case.

In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It's better to keep it alone.


  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (

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How To

How to keep physical gold in an IRA

The easiest way to invest is to buy shares in companies that make gold. This method is not without risks. There's no guarantee these companies will survive. Even if they do survive, there is still the possibility of losing money to fluctuating gold prices.

Another option is to purchase physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You also have a lower chance of theft than stocks.

However, there are disadvantages. For example, you won't benefit from banks' interest rates or investment funds. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, tax man may want to ask where you put your gold.

If you'd like to learn more about buying gold in an IRA, visit the website of today!


By: Jamie Redman
Title: Commerzbank Secures Crypto Custody License, Paving the Way for Digital Asset Services
Sourced From:
Published Date: Wed, 15 Nov 2023 16:30:40 +0000

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