Landesbank Baden-Württemberg (LBBW), Germany’s largest federal bank, has partnered with cryptocurrency exchange Bitpanda.
LBBW uses Bitpanda’s “Investment-as-a-Service” infrastructure to provide cryptocurrency custody to its clients.
Jürgen Harengel, COO of the Corporate Bank of LBBW, stated that “the demand from our corporate customers for digital assets is increasing.”
TradFi’s wave of crypto acceptance continues to accelerate globally, particularly in light of the euphoria surrounding Bitcoin’s halving. In a major development, Germany’s largest federal bank, Landesbank Baden-Württemberg (LBBW), has announced plans to offer crypto custody services in collaboration with cryptocurrency exchange Bitpanda.
Germany’s Largest Bank Partners with Bitpanda for Crypto Custody
According to Bloomberg, Landesbank Baden-Württemberg, Germany’s largest federal bank, and Bitpanda crypto exchange will offer cryptocurrency custody services in the second half of 2024.
The collaboration between Germany’s main federal bank and the country’s largest cryptocurrency exchange marks a significant step forward for crypto adoption. As MiCA regulation approaches, this partnership underscores growing institutional interest in digital assets. Bitpanda, an Austrian unicorn startup, received a crypto license from Germany’s financial authority (BaFin) in November 2022. This achievement positions Bitpanda as one of the few companies holding both crypto custody and proprietary trading licenses, enhancing its credibility.
According to a statement released on April 15, LBBW and Bitpanda will provide cryptocurrency custody to institutional and corporate clients. Some German savings banks, including the state of Baden-Wuerttemberg and the city of Stuttgart, own LBBW. Its assets total almost €333 billion ($355 billion).
“Our corporate customers’ demand for digital assets is increasing. We are confident that crypto assets will establish themselves as a foundation for future business strategies. With this collaboration, we are setting up the necessary technical and regulatory framework from the outset.
This will enable us to effectively support the specific cryptocurrency initiatives of our corporate clients.
Jürgen Harengel, managing director of corporate banking at LBBW, emphasized the importance of this partnership.
Banks’ Active Participation in Crypto
German banks and asset managers are growing their interest in crypto assets as the EU’s MiCA regulations take effect later this year.
In March, Deutsche Boerse, a renowned German stock exchange, launched Deutsche Boerse Digital Exchange (DBDX). This platform is fully regulated, aiming to offer a safe environment for institutional cryptocurrency trading. It facilitates trading, settlement, and custody of digital assets within strict regulatory frameworks. The introduction of DBDX signifies a significant step towards mainstream acceptance of cryptocurrencies.
Furthermore, individual and institutional investors in Germany value Bitcoin and altcoins highly. Xetra, an electronic securities trading platform, has begun supplying crypto ETPs and ETNs to companies like 21Shares and WisdomTree.
According to KPMG’s new research, German investors are actively purchasing crypto assets as trust returns outpace the rise in the price of Bitcoin.
