- Beginning in 2024, LBBW and Bitpanda will provide institutional and corporate clients with crypto currency custody services for Bitcoin, Ethereum, and XRP.
- LBBW will launch crypto custody services in the second half of 2024 due to demand from institutional and corporate clients.
The largest state-backed bank in Germany, Landesbank Baden-Württemberg (LBBW), has declared its entry into the cryptocurrency custody services market, with $355 billion in assets. The first to report on this was BNN Bloomberg.
Landesbank Baden-Württemberg, Germany’s biggest federal bank, plans to start offering cryptocurrency custody services in partnership with the Bitpanda exchange. https://t.co/4hQOoVjMwe
— BNN Bloomberg (@BNNBloomberg) April 15, 2024
Growing Institutional Requirements for Digital Assets
This action, which was taken in partnership with the cryptocurrency exchange Bitpanda, represents a major entry into the digital asset market by one of the biggest financial institutions in Europe.
The service, which will launch in the second half of 2024 for institutional and corporate clients, indicates a significant surge in demand for digital asset services among traditional banking customers.
According to Jürgen Harengel, Managing Director of Corporate Banking at LBBW, the bank’s new products are primarily a result of corporate clients’ growing interest in digital assets.
Developments in German Cryptocurrency Market Regulations
This development is viewed as a turning point for traditional German financial services offering cryptocurrency services. As a result of upcoming EU laws that are anticipated to provide clarity and security to this developing market, it coincides with a growing interest in cryptocurrency assets among German banks and asset managers.
In line with a wider trend of well-established financial institutions getting ready to enter the digital economy, Deutsche Bank has also been developing its digital asset custody solutions.
On the other hand, according to a previous report by ETHNews, the launch of DBDX, a cryptocurrency trading platform under Deutsche Börse’s supervision and with a BaFin license, has also altered the game’s rules for institutional investors.
Large-scale investors will find cryptocurrency investments more credible and accessible because of the provision of a safe and clear legal environment.
The crypto community has welcomed LBBW’s move, with well-known blockchain researcher Collin Brown applauding the bank’s foray into cryptocurrencies on X, including Bitcoin, Ethereum, and XRP.
🚀 Exciting news from Germany! Landesbank Baden-Württemberg, the nation's largest federal bank with $355,000,000,000 in assets under management, is teaming up with @Bitpanda_global to launch #Bitcoin, #Ethereum, #XRP, and other crypto asset custody services! 💼💰
"The demand… pic.twitter.com/rZuGhT16wc
— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) April 15, 2024
According to previous reports from ETHNews, Ripple’s Chief Technology Officer, David Schwartz, recently announced the company’s plans to join the $10 trillion cryptocurrency custody market. It will happen by collaborating with significant players like global banking giant HSBC and significant partner Metaco.