Landesbank Baden-Württemberg wants to offer services related to Bitcoin and Co.
Germany's largest Landesbank, with total assets of EUR 333 billion, has entered into a strategic partnership with the European crypto exchange Bitpanda. Through this cooperation, Landesbank Baden-Württemberg (LBBW) aims to enable corporate customers to buy and store Bitcoin and other cryptocurrencies via a regulated infrastructure. This is according to the official press release from the major state-owned bank.
The number of German companies that own or trade crypto assets continues to grow. This means that the custody of crypto assets is also becoming increasingly important as a basic infrastructure. LBBW and Bitpanda are working together to provide LBBW's corporate customers with a regulated platform for the custody and procurement of crypto assets in the coming months.
From the press release
The launch of a pilot project is already planned for the second half of the year and the Austrian-based crypto exchange Bitpanda is to take on the role of "technology supplier" in the long term.
High demand from German companies
LBBW has recognized the great demand for such services from German companies. According to the Landesbank's observations, they increasingly want to rely on Bitcoin and the like.
The demand from our corporate customers for digital assets is growing. We are convinced that crypto assets will establish themselves as a building block for further business models. With this cooperation, we are creating the technical and regulatory basis at an early stage to support the individual crypto strategies of our corporate customers in the best possible way.
Dr. Jürgen Harengel, COO Corporate Bank at LBBW
It is not yet known how many companies in Germany hold Bitcoin. It is still unclear whether German companies are still waiting for the right services or whether it is more the medium-sized companies in this country that have already built up involvement in the market and do not have to report this publicly.
Major German banks are increasingly involved in the Bitcoin market
Although the big German banks are rarely said to be drivers of innovation, they now seem to be discovering Bitcoin and Co. for themselves and approaching the market with confidence.
Deutsche Bank, the largest financial institution in the Federal Republic of Germany, already made efforts to offer custody services for digital assets last summer - Blocktrainer reported. The successful BitcoinForum of the approximately 130-year-old Volksbank Raiffeisenbank Bayern Mitte is also an indication that financial institutions can benefit from Bitcoin.
More and more established companies appear to be actively recognizing their customers' demand for digital assets. In addition, the asset class should already have enough legitimacy that even state banks such as LBBW are happy to be associated with Bitcoin and Co.
