Key Takeaways
- The collaboration, set to launch in the latter half of 2024, aims to provide institutional and corporate clients with secure storage solutions for their crypto holdings.
- The partnership will witness LBBW provided with “Investment-as-a-Service” infrastructure to store and procure cryptocurrencies
In a significant development, Germany’s largest federal bank Landesbank Baden-Württemberg (LBBW) is looking to enter the cryptocurrency custody arena in partnership with Austria-based crypto exchange Bitpanda.
Jürgen Harengel, LBBW’s managing director of corporate banking, highlighted a growing demand for digital assets among corporate clients. He further mentioned the need for tailored solutions to accommodate clients’ evolving crypto strategies, stating, “The demand from our corporate customers for digital assets is increasing.”
As per the official statement, LBBW’s entry into cryptocurrency custody is expected to leverage Bitpanda’s institutional custody solution. “Bitpanda provides the necessary technical and regulatory infrastructure to offer our customers innovative and, above all, secure solutions in the area of digital assets.”
The collaboration, set to launch in the latter half of 2024, aims to provide institutional and corporate clients with secure storage solutions for their cryptocurrency holdings. In November 2022, the German financial authority, BaFin, licensed Bitpanda to offer crypto-related services in Germany.
Reflecting on the partnership, Bitpanda’s CEO expressed enthusiasm, stating, “We are delighted to partner with LBBW to provide institutional-grade custody services.”
A recent KPMG survey reveals a surge in crypto investments among retail and institutional investors in the DACH region. The DACH region refers to the three Central European countries of Germany (D), Austria (A), and Switzerland (CH). The study revealed that more than 20% of respondents made investments in cryptocurrency.
LBBW is however not the only bank in Germany to venture into the field of cryptocurrency. In recent months, Deutsche Bank and DZ Bank have also explored digital asset custody and trading services
