One of Germany’s largest banks, Landesbank Baden-Württemberg (LBBW), has announced plans to launch cryptocurrency custody services for institutional clients in the latter half of 2024. The move comes in response to growing demand from corporate customers seeking exposure to digital assets.
LBBW will collaborate with Austrian crypto exchange Bitpanda to facilitate this offering. Bitpanda’s institutional-grade custody platform, registered with UK regulators, will provide the underlying infrastructure and licensing for securely holding cryptocurrencies like Bitcoin and Ethereum.
Jürgen Harengel, LBBW’s managing director of corporate banking, shared with Bloomberg the increasing appetite from businesses for crypto custody, stating, “The demand from our corporate customers for digital assets is increasing.”
According to Gonzalo Lamas, Bitpanda’s head of global communications, LBBW will leverage their ‘Investment-as-a-Service’ platform, custody solutions, and relevant licenses to enhance its digital asset capabilities and deliver secure, innovative offerings to corporate clientele.
Meanwhile, LBBW is not the only major German financial institution preparing for the crypto markets. Deutsche Bank has been working on digital asset custody services since September 2023 through a partnership with Swiss crypto firm Taurus. Furthermore, DZ Bank unveiled a crypto custody platform last November and plans a trading pilot in 2024.
These initiatives come as the European Union finalizes its Markets in Crypto-Assets (MiCA) regulation, set to take full effect in December 2024. MiCA will establish a comprehensive legal framework for the crypto industry across the EU.
The finalization of MiCA guidelines, including rules around reverse solicitation, is currently undergoing consultation, with the outcome likely shaping the regulation’s ultimate implementation details.
As traditional financial giants like LBBW embrace digital assets, the stage is set for the European crypto market to enter a new era of regulatory clarity and mainstream integration.
