According to recent reports by Ledgerinsights, Germany’s leading commercial bank, DekaBank, has secured a coveted cryptocurrency custody license from both the country’s financial regulator, BaFin, as well as the European Central Bank (ECB). This development marks another milestone in the increasing acceptance and integration of digital assets into mainstream financial services.
DekaBank’s acquisition of this license comes after fellow German institution, Commerzbank, became the first major bank in the country to obtain such authorization last year. While there have been numerous applications for similar licenses since then, only a handful have been approved by both BaFin and the ECB. The recent approval of eleven additional licenses by BaFin suggests growing confidence among regulators towards digital asset management by specialized third parties.
The trend towards greater regulation and acceptance of cryptocurrencies within traditional finance circles is likely due to increased demand from institutional investors seeking reliable ways to manage their exposure to these assets. As such, we can expect further developments in this space as more banks look towards offering specialized crypto custody solutions alongside their traditional offerings.
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Source: m.theblockbeats.info