Landesbank Baden-Württemberg to Offer Crypto Custody Services in 2024 Amid Anticipated MiCA Regulations
Summary:
Germany's largest federal bank, Landesbank Baden-Württemberg, plans to offer cryptocurrency custody services to its institutional clients starting in the second half of 2024, in partnership with Austrian cryptocurrency exchange Bitpanda. This move follows increasing corporate demand for digital asset custody, and in anticipation of the full enforcement of the Markets in Crypto-Assets (MiCA) regulations in Europe by December 2024, forming the first all-encompassing legal framework for the cryptocurrency industry.
Landesbank Baden-Württemberg, Germany's most substantial federal bank, has announced plans to introduce cryptocurrency custody services in the latter half of 2024. This venture is in conjunction with Bitpanda, a cryptocurrency exchange located in Austria and will target the bank's institutional customers. This new venture responds to a growing interest from the bank's corporate consumer base for custody of digital assets, reported Jürgen Harengel, the Head of Corporate Banking at Landesbank Baden-Württemberg, in an interview with Bloomberg.
Bitpanda's institutional custody solution, Bitpanda Custody, will be at the core of Landesbank Baden-Württemberg's offering. Bitpanda Custody is a cryptocurrency custody platform that includes decentralized finance (DeFi) functionality and is registered with the Financial Conduct Authority (FCA) in the UK.
Germany's Deutsche Bank is similarly developing digital asset custody services, having been working with the Swiss crypto startup Taurus since September 2023. Furthermore, DZ Bank, Germany's second-largest bank, disclosed plans in February to pilot a crypto trading platform later in 2024.
These moves come in anticipation of the full implementation of the Markets in Crypto-Assets (MiCA) regulations in December 2024. These regulations represent the first comprehensive legal framework for cryptocurrency in Europe, and will see crypto exchanges become fully regulated entities from December 2024 onwards, as explained by Vyara Savova, senior policy lead at the European Crypto Initiative.
The finalizing of the MiCA legislation is currently underway, with a consultation process for reverse solicitation guidelines under MiCA due to conclude on April 29. The outcomes of this consultation may have significant effects on the final implementation of MiCA, Savova noted. Of significance is how EU citizens might receive services from crypto-asset service providers (CASP) based elsewhere, and how these services will be marketed within Europe.
Published At
4/15/2024 11:25:51 AM
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