Key Points
- Landesbank Baden-Württemberg, Germany’s largest federal bank, will start providing crypto custody services in collaboration with Bitpanda exchange.
- The two financial entities will offer crypto custody to institutions and corporate clients.
Germany’s largest federal bank, Landesbank Baden-Württemberg, will start providing crypto custody services in a new collaboration with Bitpanda exchange.
LLBW and Bitpanda will start providing crypto custody opportunities to corporate clients and institutions starting H2 of 2024, according to the latest reports from Bloomberg.
Jürgen Harengel, managing director of corporate banking at LBBW, stated that the demand for crypto is increasing from the corporate customers of the bank.
Germany’s biggest federal bank plans to start offering cryptocurrency custody services in partnership with the Bitpanda exchange https://t.co/8ySjP1AFbc
— Bloomberg Crypto (@crypto) April 15, 2024
German banks and asset managers are aware of the rising demand and adoption of cryptocurrencies all over the world, and they have become active in digital assets as well.
Financial entities are offering custodial services, and they’re currently developing their own products for crypto ahead of the EU regulations that will take effect by the end of 2024.
For instance, Deutsche Bank is currently working on its own crypto custody services, and its DWS unit is part of a consortium that is developing a euro-denominated stablecoin, as Bloomberg notes.
Recently, Deutsche Bank addressed the digital disruption that comes with crypto assets on their official website, stating that the significant trillion-dollar market cap of crypto makes digital assets too important to ignore.
Digital assets shape the future of payments
Deutsche Bank Analyst Marion Laboure addressed the multiple ways in which the development of digital currencies will shape the future of payments.
They also noted that the digital trend has been gaining important momentum recently and offered as an example the fact that last year saw the largest-ever number of digital payments. The volume of cash that was transacted declined by one-third instead, according to the Deutsche Bank notes.
The expanding interest in digital assets in Germany comes amidst the worldwide wave of crypto adoption that we’ve been seeing recently.
Three months ago, the US SEC had finally approved the Bitcoin spot ETFs which saw massive success, and today, Hong Kong also announced the approval of the first batch of Bitcoin and Ethereum ETFs as well.
This is a highly important move for the crypto industry at large.
