Big news from Germany’s financial sector! Landesbank Baden-Württemberg, the country’s largest federal bank, is diving headfirst into cryptocurrencies.
Starting in the second half of 2024, they’ll be offering crypto custody solutions to institutional clients.
Landesbank Partners with Bitpanda for 2024 Crypto Custody
The bank will team up with Austria-based Bitpanda exchange. This move comes as corporate demand for crypto asset custody is on the rise. Jürgen Harengel notes that there’s a clear increase in interest from their corporate customers. Harengel serves as the managing director of corporate banking at Landesbank Baden-Württemberg.
Their partnership with Bitpanda will enable the bank to leverage Bitpanda Custody. Bitpanda is a crypto custody platform known for its strong DeFi features. The platform is also registered with UK regulators.
GERMANY'S PREMIER FEDERAL BANK TO CUSTODY BITCOIN
Landesbank Baden-Württemberg (LBBW), Germany's largest federal bank, in partnership with Austrian crypto exchange Bitpanda, plans to introduce crypto custody services in the latter half of 2024. These services, aimed at… pic.twitter.com/swf7dgRlXU
— The Wolf Of All Streets (@scottmelker) April 15, 2024
Gonzalo Lamas, head of global communication at Bitpanda sees the move as progress. Lamas highlighted how this collaboration will enhance Landesbank Baden-Württemberg’s digital asset offerings. It would also provide high-security solutions for corporate clients.
Interestingly, Landesbank Baden-Württemberg isn’t the only German bank making moves in the crypto space. German financial institutions have increased their presence in Web3 lately. For example, Deutsche Bank already teamed with Swiss startup Taurus for crypto custody. And tokenization services.
And it’s not just custody services – DZ Bank, Germany’s second-largest bank, is gearing up to launch a crypto trading pilot later this year.
New partnership alert: Bitpanda x LBBW 🤝
Landesbank Baden-Württemberg, Germany's largest federal state bank will enhance their digital asset offering in partnership with Bitpanda!
Bitpanda Technology Solutions provides LBBW with an "Investment-as-a-Service" infrastructure in… pic.twitter.com/hIwNXp9Wp4
— Bitpanda (@Bitpanda_global) April 15, 2024
Why the Rush?
Well, it’s all about preparing for the Markets in Crypto-Assets (MiCA) regulation. MiCA will kick in by December 2024. MiCA is a comprehensive legal framework. It will regulate digital asset exchanges across the EU. And usher in a new era of oversight to the industry.
As Vyara Savova, senior policy lead at the European Crypto Initiative, explains, 2024 is the year of MiCA. The finalization of MiCA regulations is still underway. The second consultation package for reverse solicitation guidelines is set to end soon.
The Markets in Crypto-Assets (MiCA) Regulation takes effect this year in the E.U. and will usher in a new era for regulatory clarity, providing guidance for stablecoin issuers, custody of digital assets, licensing, compliance & more.
Learn why it matters:https://t.co/feiRh4WDJ5
— Ripple (@Ripple) April 10, 2024
The outcomes of these consultations are important. It will shape how exchanges and other crypto service providers operate within the EU come December. It’s a pivotal moment for the crypto industry in Europe. The regulations will reshape the digital landscape for years to come.
Disclaimer
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