German Banking Giant Enters the Crypto Industry with Bitpanda Partnership

Landesbank Baden Württemberg (LBBW), the largest federal bank in Germany, has partnered with the Bitpanda cryptocurrency exchange to provide digital asset custody services.

The crypto custody platform launched through this partnership is set to launch during the second half of 2024.

Germany’s Largest Federal Bank Partners with Bitpanda

The objective behind this partnership deal is to meet the growing demand for digital asset management. The offering will target corporate and institutional clients who want to access digital asset management services.

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In the official announcement, the German bank said that it plans on using the advanced investment-as-a-service (IaaS) infrastructure solution offered by Bitpanda Technology Solution. LBBW seeks to use the infrastructure to offer a wide range of crypto-related services including crypto custody and procurement to corporate clients.

According to Bitpanda, the two companies will work on a pilot program under this partnership. The pilot will involve the custody and procurement of cryptocurrencies like Bitcoin, Ethereum, and others. The pilot program is set to be developed over the next months.

While commenting on this partnership, the COO of Corporate Bank at the German bank, Dr. Jürgen Harengel, opined that the partnership sought to meet the growing demand for these services. By working together, the bank planned to support the crypto strategies of its corporate clients.

“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,” Harengel said.

Growing Crypto Adoption in Germany

Germany is part of the EU, where crypto regulations are set to change following the launch of the Markets in Crypto Assets (MiCA) regulations. The MiCA regulatory framework is believed to be the most comprehensive crypto framework globally, and it will set safeguards that will protect those looking to invest in the crypto industry.

LBBW is not the only German bank that is expanding its reach into the cryptocurrency industry. More banks and asset managers are becoming involved in crypto assets. These institutions are offering services such as crypto custody. They are also creating their products for cryptocurrencies as an asset class.

Another German bank that is also pursuing similar offerings is Deutsche Bank. This bank is creating a digital asset custody service. It also has a digital unit that is currently working in a stablecoin denominated in euros.

DZ Bank, the second-largest bank in Germany, is also pursuing similar offerings. It is currently exploring digital asset custody services through a partnership deal with Swiss firm Metaco.