Landesbank Baden-Württemberg (LBBW), Germany’s foremost state-backed lender boasting assets exceeding $350 billion, is gearing up to introduce crypto custody services. Teaming up with crypto exchange Bitpanda, LBBW aims to tap into the institutional and corporate segments of the market, with plans slated for implementation in the latter half of 2024.
Bitpanda will leverage its cutting-edge “investment-as-a-service” infrastructure to empower LBBW in extending crypto offerings to its esteemed corporate clientele.
The pilot initiative will initially focus on facilitating custody and procurement services for premier cryptocurrencies such as Bitcoin and Ethereum, with a commitment to explore further digital assets in the pipeline.
Jürgen Harengel, the managing director of corporate banking at LBBW, expressed unwavering confidence in the venture, citing a surge in demand for digital assets among corporate customers.
He explained the pivotal role crypto assets are poised to play in shaping future business paradigms. This underlines the bank’s proactive stance in meeting evolving market dynamics.
While the primary target demographic comprises institutional and corporate entities, LBBW remains noncommittal regarding extending the crypto offering to retail clients.
Established in 1999, LBBW has cemented its reputation as a comprehensive commercial bank and pivotal central bank for savings institutions across Baden-Württemberg, Rhineland-Palatinate, and Saxony. Recognized as a significant financial institution since 2014, LBBW stands at the forefront of banking innovation and regulatory compliance.
This foray into crypto custody services mirrors broader industry trends in Germany, as evident in a recent study conducted by KPMG and BTC-ECHO, which anticipates a surge in crypto interest among private investors, with more than half allocating over 20% of their total assets to crypto investments.
