Germany’s largest federal bank, Landesbank Baden-Württemberg (LBBW), is venturing into the world of cryptocurrencies by launching crypto custody services in partnership with Bitpanda, a popular crypto exchange. This move is aimed at catering to the growing demand for digital assets among institutional and corporate clients.

The collaboration between LBBW and Bitpanda will see the bank leveraging Bitpanda’s “investment-as-a-service” infrastructure to offer crypto services to its corporate clients. The pilot program will initially focus on custody and procurement of popular cryptocurrencies like Bitcoin and Ethereum, with plans to expand to other digital assets in the future.

Jürgen Harengel, managing director of corporate banking at LBBW, emphasized the increasing demand for digital assets among corporate customers and expressed confidence in the potential of crypto assets to drive new business models. While the initial focus is on institutional and corporate clients, the possibility of extending the services to retail clients is being considered.

LBBW’s entry into the crypto custody space aligns with the growing interest in cryptocurrencies in Germany. A recent study by KPMG and BTC-ECHO revealed that private investors in Germany are increasingly allocating a significant portion of their total assets to crypto investments, indicating a strong appetite for digital assets in the country.

As LBBW prepares to launch its crypto custody services in the second half of 2024, this partnership with Bitpanda marks a significant step towards providing institutional and corporate clients with access to the booming crypto market. Stay tuned for more updates on this exciting development in the world of cryptocurrencies.

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