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Commerzbank, a full-service bank in Germany, has become the first bank in the country to be granted a crypto custody license. This is a significant development considering the strict regulations set by BaFin, the German regulatory body, for companies dealing with digital assets. While crypto exchanges like Binance have faced challenges in obtaining a license, banks, with their established position in the traditional financial system, seem to have an advantage in navigating the application process. The banking industry is realizing the need to adapt to the crypto sector, as its failure to do so could potentially lead to its own demise. Banks, known for their slow-moving and unprofitable nature, must find a way to keep up with the fast-paced crypto industry. Some argue that government intervention and strict regulations are the only factors giving banks a chance to compete. As crypto projects explore decentralization as a way to escape regulatory constraints, more opportunities are emerging for individuals to invest in higher-yielding crypto products. For banks, exploring new sources of profit is crucial, especially as many of them are struggling due to poor investments. The crypto custody niche presents an opportunity for banks to generate revenue. Commerzbank’s entry into this space is likely to inspire other banks to follow suit. While crypto was initially intended for individuals seeking an alternative to the traditional monetary system, the involvement of large financial institutions is shifting the sector towards catering to big money rather than the common investor. In conclusion, Commerzbank’s crypto custody license marks a significant milestone in the banking industry’s engagement with the crypto sector. As banks recognize the need to adapt and find new sources of profit, the crypto industry presents both challenges and opportunities. The future relationship between banks and crypto remains uncertain, but it is clear that the sector is gaining traction and attracting the attention of traditional financial institutions.