Germany’s Largest Federal Bank to Offer Crypto Custody Services

April 15, 2024

Germany’s Landesbank Baden-Württemberg (LBBW), the country’s largest federal bank, is set to offer cryptocurrency custody services to institutional clients in the second half of 2024. This move is a strategic response to the increasing demand for digital asset custody from corporate clients and a reflection of Europe’s growing influence in the global crypto custody race.

In partnership with the Austria-based Bitpanda cryptocurrency exchange, LBBW aims to enhance its digital asset offerings, ensuring high security and innovative solutions for corporate clients. Bitpanda Custody, a crypto custody platform with decentralized finance (DeFi) capabilities, is registered with the United Kingdom’s Financial Conduct Authority (FCA), making it a reliable partner for LBBW’s foray into the crypto world.

Germany’s banks are preparing for the Markets in Crypto-Assets (MiCA) regulation, which will take full effect in December 2024. This comprehensive legal framework for the crypto industry will regulate crypto assets, crypto asset services, and crypto asset service providers. As crypto exchanges become fully regulated entities, the demand for digital asset custody services is expected to grow, positioning German banks to capitalize on this trend.

In addition to LBBW, other German banks are also exploring crypto services. Deutsche Bank has been working on digital asset custody services since September 2023, while DZ Bank, the country’s second-largest bank, announced its plans to launch a crypto trading pilot in 2024. Germany’s DZ Bank also launched a blockchain-based digital asset custody platform in November 2023, further demonstrating the country’s commitment to embracing digital assets.

In conclusion, Germany’s Landesbank Baden-Württemberg joining the ranks of European banks offering crypto custody services is a testament to Europe’s leadership in the global crypto custody race. As the demand for digital asset custody services grows, German banks are positioning themselves to capitalize on this trend, ensuring high security and innovative solutions for corporate clients.

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