Germany’s largest federal bank, Landesbank Baden-Württemberg, has announced its plans to offer cryptocurrency custody solutions starting in the second half of 2024. The bank will collaborate with Austria-based Bitpanda cryptocurrency exchange to provide crypto custody services to institutional clients. Corporate demand for digital asset custody has been on the rise, according to Jürgen Harengel, the managing director of corporate banking at Landesbank Baden-Württemberg.
To facilitate its offering, Landesbank Baden-Württemberg will utilize Bitpanda’s institutional custody solution, known as Bitpanda Custody. This crypto custody platform is equipped with decentralized finance capabilities and is registered with the United Kingdom’s Financial Conduct Authority. Cointelegraph has reached out to Bitpanda exchange for further comment.
Other German banks are also exploring the provision of crypto services. Deutsche Bank has been working on digital asset custody services since September 2023, partnering with Swiss crypto startup Taurus for custody and tokenization services. DZ Bank, the second-largest bank in Germany, has plans to launch a crypto trading pilot later in 2024 and has already unveiled its digital asset custody platform in November 2023.
These moves by German banks are in preparation for the implementation of the Markets in Crypto-Assets (MiCA) regulatory framework, which will come into full effect in December 2024. MiCA is set to be the first comprehensive legal framework for the crypto industry. Under MiCA, crypto exchanges will become fully regulated entities. The finalization of the MiCA bill is still ongoing, with the second consultation package for reverse solicitation guidelines set to end on April 29. The outcome of this consultation will have a significant impact on the final implementation of MiCA in December, according to Vyara Savova, senior policy lead at the European Crypto Initiative.