Landesbann Baden-Württemberg (LBBW), a leading German federal and commercial bank, will begin offering digital asset custody services in the second half of 2024, according to a new report from Bloomberg.
The bank will reportedly partner with the Australian crypto exchange Bitpanda to provide these services. Bitpanda’s custody platform will serve as the bank’s long-term technology provider and provide it with an “investment-as-a-service” infrastructure for various uses, including storing and procuring digital assets like Bitcoin, Ethereum, Solana, and other virtual assets.
Jürgen Harengel, the bank’s managing director, told Bloomberg on Monday that the Bank has been experiencing a growing corporate interest in crypto custody services. Harengel also noted that, with the collaboration, both firms will develop the regulatory and technical basis at a foundational stage to help the individual crypto strategies of the bank’s corporate clients.
Stefanie Münz, a member of the LBBW Board of Directors, explained that this partnership enables the LBBW to position itself as a straightforward source of added value for its institutional customers while sustaining the highest standards.
Lukas Enzerdorfer-Konrad, the CEO of Bitpanda Technology Solutions, reportedly said that this collaboration marked a notable milestone for both firms. He noted that LBBW is paving the way for its corporate clients and demonstrating how traditional systems can be aligned with agility, innovation, and pioneering spirit.
Bitpanda is one of the few regulatory-compliant crypto firms in the European market. It holds operating licenses in many European countries, including Germany. Notably, its Custody platform is registered with the United Kingdom’s Financial Conduct Authority (FCA).
LBBW’s move follows the recent trend of traditional German financial institutions expanding their reach to the digital asset sector. Deutsche Bank sought approval in June 2023 to offer digital asset custody services to its customers. Though a timeline for when the services would be active was not released at the time, the Bank had reportedly been considering the move for almost three years.
ALSO READ: Germany’s DZ Bank Includes Digital Currencies in Its Asset Management Offerings
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