The largest German federal bank, in partnership with the crypto exchange Bitpanda and aimed at institutional clients and corporations, is planning to launch crypto-custody services.
Germany’s biggest state-backed lender with over $350 billion in assets under management, Landesbank Baden-Württemberg (LBBW), will launch crypto custody services for its institutional and corporate clients in the second half of 2024 in a move aimed at boosting the local market of virtual assets.
An X-announcement on April. Bitpanda announced on Apr. 15 that it would give the lender its cryptocurrency. “investment-as-a-service” Infrastructure so that LBBW can “offer crypto to their corporate clients.”
“The pilot for custody and procurement of cryptocurrencies such as Bitcoin, Ethereum and other digital assets will be further developed in the coming months.”
Bitpanda
Commenting on the new venture, Jürgen Harengel, managing director of corporate banking at LBBW, said the move reflects the demand from the bank’s corporate customers for digital assets, as it keeps “increasing.”
“We are convinced that crypto assets will establish themselves as a building block for further business models.”
Jürgen Harengel
Although the focus initially is on corporate and institutional clients, it remains uncertain whether the service could be extended to retail customers. Founded in 1999, LBBW is a full-service commercial bank and central bank for savings banks in Baden-Württemberg, Rhineland-Palatinate and Saxony. Later in 2014, this lender was recognized as an institution of significance since the implementation of European Banking Supervision.
LBBW’s entry into the crypto-custody market is in line with industry trends. A recent study conducted by the German Federal Institute of Technology (DIFT) found that Germany has seen a rise in cryptocurrency custody. study KPMG’s and BTC Echo’s joint study revealed that private investors have a high level of interest in cryptocurrency, as more than half had invested over 20% of their assets.
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Source: crypto.news
