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Bitpanda Exchange: Austrian CEX Teams With German Bank on Crypto Custody

Last Updated April 15, 2024 12:37 PM
Teuta Franjkovic
Last Updated April 15, 2024 12:37 PM
By Teuta Franjkovic
Verified by Peter Henn

  Key Takeaways

  • German banking giant LBBW enters crypto.
  • Growing demand & regulatory tailwinds.
  • Germany’s crypto landscape shifts.

Landesbank Baden-Württemberg (LBBW), Germany’s largest federal bank, has announced  a significant foray into digital assets.

LBBW has formed a partnership with Austrian cryptocurrency exchange Bitpanda in a bid to let it introduce  cryptocurrency custody services. It is specifically targeting institutional and corporate clients.

Landesbank Baden-Württemberg Takes a Leap into Crypto with Bitpanda

The service rollout is slated for the second half of 2024, with LBBW seeking to expand into the burgeoning digital assets sector.

The initiative to launch crypto custody services comes in response to growing demand among LBBW’s corporate customers.

Jürgen Harengel, managing director of corporate banking at LBBW, said : “The demand from our corporate customers for digital assets is increasing.”

This move is indicative of a broader trend among German banks and asset managers. Recently, they have progressively engaged with cryptocurrency, by either offering custodial services or developing proprietary products tailored to the asset class. The timing aligns with upcoming EU regulations expected to bring more clarity and security to digital asset ventures.

A Look at Germany’s Evolving Crypto Landscape

LBBW’s push into crypto custody services is part of a larger movement within the German financial sector where major institutions like Deutsche Bank are also establishing their own digital asset solutions. Deutsche Bank is currently working on a digital-asset custody platform. Meanwhile, its investment management wing, DWS, is part of a consortium developing a euro-denominated stablecoin.

These developments reflect a significant shift in how traditional financial institutions perceive and integrate digital assets into their service portfolios. LBBW, with a base of €333 billion in assets, is well-positioned to become a key player in this digital transition.

A Tipping Point for Crypto Adoption?

With owners that include  some of the country’s savings banks, the state of Baden-Württemberg, and the city of Stuttgart, LBBW’s venture into cryptocurrencies could potentially lead to wider adoption of digital assets within the traditional banking sector in Germany.

This partnership with Bitpanda not only underscores the bank’s commitment to responding to client needs but also sets a precedent for other institutions considering similar expansions into the digital assets space.

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