German Banks Offer Cryptocurrency Services Without Custody Permission
German cooperative banks are increasingly offering cryptocurrency services to their customers through partnerships with specialized providers. According to an analysis by The Industry Spread, between August 12 and September 10, 2026, 14 of the 16 new entries added to the European securities regulator ESMA's CASP register were German cooperative banks.
The banks' authorization for cryptocurrency services only covers the execution of buy and sell orders, not custody. This means that customers' private keys are held by a third party, which raises concerns about security and risk.
Our own count of 66 crypto-asset service providers in the BaFin database revealed that none of the cooperative institutions carry the crypto custodian designation, despite being authorized to provide custody services under MiCAR.