Germany’s biggest federal bank (LBBW) reveals plans to offer crypto custody services in partnership with crypto exchange Bitpanda.
TradFi’s global cryptocurrency adoption surge continues to gain momentum, particularly in light of the anticipation surrounding the halving of Bitcoin.
Landsbank Baden-Württemberg (LBBW), the largest federal bank in Germany, announced intentions to collaborate with cryptocurrency exchange Bitpanda to provide crypto custody services. This development represents a significant milestone.
Bloomberg reported that Landesbank Baden-Württemberg, the largest federal bank in Germany, and the Bitpanda cryptocurrency exchange will offer custody services for cryptocurrencies in the second half of 2024.
The collaboration between Germany’s preeminent federal bank and the country’s largest cryptocurrency exchange is a significant development in adopting cryptocurrency and advancing MiCA regulation.
Bitpanda, an Austrian unicorn, obtained a crypto license from BaFin, the financial regulator of Germany, in November 2022. This achievement positions Bitpanda among a select group of companies that have obtained crypto custody and proprietary trading licenses.
LBBW and Bitpanda will provide institutional and corporate clients with crypto custody, the companies announced on April 15. LBBW is under the ownership of several German savings institutions, including those of Stuttgart and the state of Baden-Württemberg. Its assets amount to approximately €333 billion ($355 billion).
“The demand from our corporate customers for digital assets is increasing. We are convinced that crypto assets will establish themselves as a building block for further business models. With this cooperation, we are creating the technical and regulatory basis at an early stage to best support the individual crypto strategies of our corporate customers,” said Jürgen Harengel, managing director of corporate banking at LBBW.
Active Bank Participation in Cryptocurrency
The activity of German banks and asset managers in crypto assets is rising in anticipation of implementing the EU’s MiCA regulations later this year.
In March, Deutsche Boerse, a German stock exchange company, introduced the Deutsche Boerse Digital Exchange (DBDX), a fully regulated cryptocurrency trading platform. The objective is to provide a secure and comprehensive setting for institutional transactions, settlements, and custody of this category of digital assets.
Furthermore, both institutional and retail investors in Germany have a substantial appetite for Bitcoin and alternative cryptocurrencies. Xetra, an electronic securities trading platform, has provided 21Shares and WisdomTree with crypto ETP and ETN.
Recent research by KPMG indicates that German investors are actively purchasing crypto assets as confidence returns in anticipation of a Bitcoin price increase.
