Landesbank Baden-Württemberg (LBBW), Germany’s largest state-owned bank, is set to introduce digital asset custody services in partnership with the cryptocurrency exchange Bitpanda. This new service, aimed at meeting the growing needs of institutional and corporate clients for digital asset management, is slated to launch in the second half of 2024.
LBBW plans to utilize Bitpanda Technology Solution’s sophisticated “Investment-as-a-Service” (IaaS) infrastructure to facilitate cryptocurrency custody and procurement for its corporate clients.
Bitpanda has indicated that the pilot program for the custody and procurement of cryptocurrencies like Bitcoin and Ethereum, along with other digital assets, will undergo further development in the coming months.
Dr. Jürgen Harengel, COO of Corporate Bank at LBBW, commented on the initiative, stating, “The interest in digital assets among our corporate customers is on the rise. We believe that crypto assets will become a fundamental component of additional business models. This collaboration allows us to establish the necessary technical and regulatory groundwork early to optimally support our corporate clients’ individual crypto strategies.”
The trend of German banks and asset managers deepening their involvement in cryptocurrency is growing. They are increasingly offering custody services and developing proprietary products for this asset class, possibly in anticipation of forthcoming EU regulations.
For example, Deutsche Bank is in the process of creating its own digital asset custody service, and its investment management arm, DWS, is participating in a consortium that is developing a stablecoin pegged to the euro.
Additionally, DZ Bank, Germany’s second-largest bank by assets, announced in February that it would begin offering digital asset custody services. This initiative is in partnership with the Swiss company Metaco and involves using the Harmonize orchestration platform.