This is good news for customers of Landesbank Baden-Württemberg in Germany. From the second half of 2024, Germany’s largest federal bank will be offering a cryptocurrency custody service in partnership with Bitpanda. Initially, these cryptocurrency wallet services will only be available to institutional and corporate customers.
Baden-Württemberg Bank gets into crypto in response to customer demand
Long critical of cryptocurrencies, banking institutions are increasingly getting involved in the crypto sector. According to Bloomberg Germany’s largest federal bank will launch cryptocurrency custody services. The Landesbank Baden-Württemberg had to take this decision in response to strong demand from its customers according to Jürgen Harengel, Managing Director, Corporate Banking.
Our corporate customers’ demand for digital assets is growing
Jürgen Harengel, Managing Director Corporate Banking
For the time being, cryptocurrency holding services are not yet available at the Landesbank Baden-Württemberg. It will not be launched until the second half of 2024. In addition, only institutional and corporate customers will be eligible for crypto custody services at Landesbank Baden-Württemberg.
Bitpanda assists Landesbank Baden-Württemberg in the custody of crypto
To successfully enter the blockchain industry, Landesbank Baden-Württemberg has joined forces with Bitpanda. This Austrian-based crypto exchange will have to provide the necessary infrastructure to offer cryptocurrencies to their B2B and institutional customers.
As part of this partnership Landesbank Baden-Württemberg will use the crypto wallet tool developed by Bitpanda. Called Bitpanda Custody, this platform is registered with the UK’s Financial Conduct Authority (FCA). The platform thus offers an appreciable level of security and compliance.
German banks prepare for MiCA law
While it’s true that several banking institutions are turning to crypto around the world, the momentum is even stronger in Germany. Long before the Landesbank Baden-Württembergits competitor DZ Bank that has opened cryptocurrency custody services to its institutional clients. German bank DekaBank has not lagged behind either. Just over a year ago, it joined forces with crypto company Metaco to offer crypto custody and management services to its institutional clients.
So why are banking institutions in Europe’s largest economy turning to crypto on a massive scale? Some observers believe that German banks are preparing to MiCA law. These regulations, which will come fully into force at the end of 2024, will bring new requirements for players in the crypto industry. This is particularly the case for crypto exchanges, which will become fully regulated entities with MiCA. As a result, banks will be able to operate in Europe under the same conditions as crypto exchanges. US banks lobby SEC for similar rules.
The Landesbank Baden-Württemberg is not just any banking institution in Europe. Is it positioning itself to become one of Germany’s future leader crypto banks? With $355 billion in assets under management, it is Germany’s largest federal bank. Its entry into the crypto sector is therefore a great opportunity for crypto investment in Europe.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
