Report: Largest federal bank in Germany set to provide crypto custody services

Germany’s largest federal bank, Landesbank Baden-Württemberg, has announced plans to offer cryptocurrency custody services starting in the second half of 2024. The bank will partner with Bitpanda, an Austria-based cryptocurrency exchange, to provide these services to institutional clients. Jürgen Harengel, managing director of corporate banking at Landesbank Baden-Württemberg, revealed that there has been a growing demand for digital asset custody among corporate clients. The bank will utilize Bitpanda’s institutional custody solution, Bitpanda Custody, which is a registered crypto custody platform with decentralized finance capabilities. German banks are not the only ones venturing into the cryptocurrency market, as Deutsche Bank has also been working on digital asset custody services since September 2023, and DZ Bank plans to launch a crypto trading pilot later in 2024. These moves come as European banks prepare for the implementation of the Markets in Crypto-Assets (MiCA) regulatory framework in December 2024, which will provide a comprehensive legal framework for the crypto industry. Once the framework is in effect, crypto exchanges will become fully regulated entities. The finalization of the MiCA bill is currently underway, with the second consultation package set to conclude on April 29, determining the guidelines for reverse solicitation. The outcome of this consultation will greatly influence the final implementation of MiCA in December.