DekaBank Secures Cryptocurrency Custody License in Germany

According to Odaily, Germany's DekaBank has received a cryptocurrency custody license from the country's financial regulator BaFin and the European Central Bank (ECB). This makes DekaBank the second German bank to obtain such a license, following Commerzbank, which was the first to receive approval last year. Other major banks, including DZ Bank, have yet to secure similar licenses. BaFin has issued a total of 11 cryptocurrency custody licenses, primarily to cryptocurrency companies. Among these is the digital asset custody subsidiary of Hauck Aufhäuser Lampe Privatbank. Unlike cryptocurrency companies, DekaBank and Commerzbank are licensed under the German Banking Act (KWG). This marks the second new license DekaBank has acquired this year. In July, the bank obtained a license to register crypto securities based on distributed ledger technology (DLT) in Germany, allowing the issuance of these securities without the need for a central securities depository (CSD).