Key Points
- Landesbank Baden-Württemberg (LBBW) plans to launch crypto custody services in partnership with Bitpanda.
- The services, aimed at institutional and corporate clients, are expected to roll out in the second half of 2024.
Landesbank Baden-Württemberg (LBBW), Germany’s largest state-backed bank, has revealed plans to offer crypto custody services. The bank, which manages over $350 billion in assets, is partnering with crypto exchange Bitpanda to develop these services.
Boosting the Local Crypto Market
The services are scheduled to launch in the second half of 2024 and are aimed at institutional and corporate clients. The move is part of a broader strategy to bolster the local virtual assets market.
Bitpanda announced on April 15 that it would provide LBBW with its “investment-as-a-service” infrastructure. This collaboration will enable LBBW to offer crypto services to its corporate clients. The pilot for the custody and procurement of cryptocurrencies like Bitcoin, Ethereum, and other digital assets will be further developed in the coming months.
Reflecting Customer Demand
Jürgen Harengel, managing director of corporate banking at LBBW, stated that the move reflects the increasing demand for digital assets from the bank’s corporate customers. He expressed his belief that crypto assets will establish themselves as a fundamental component of future business models.
While the initial focus is on institutional and corporate clients, it is unclear whether the offering will be extended to retail clients. LBBW, established in 1999, is a full-service commercial bank and central bank for savings banks in Baden-Württemberg, Rhineland-Palatinate, and Saxony. The bank has been recognized as a significant institution since the implementation of European Banking Supervision in 2014.
LBBW’s entry into crypto custody aligns with wider industry trends in Germany. A recent study conducted by KPMG and BTC-ECHO found that more than half of private investors in Germany are dedicating over 20% of their total assets to crypto investments.
