A large traditional bank becomes the first in the EU to introduce crypto services

The Austrian banking institution, Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien), has partnered with Bitpanda to introduce crypto investment services through a software as a service (SaaS) offering.

With this collaboration, the Austrian bank has become the first major traditional bank in the European Union to step into the digital asset space.

In addition to crypto investments, the Austrian company will also focus on the potential implementation of stocks and ETFs, crypto, commodities, as well as precious metals within the offering with a minimum investment of just one euro. The main goal is to help the bank’s clients ‘achieve their financial ambitions,’ according to the official statement.

Bitpanda’s CEO Eric Demuth highlighted the complexity and lack of inclusivity in the financial market. The CEO stated in the announcement that the company intends to simplify the process and make investing accessible to everyone.

– We are talking about simple, intuitive products that do not require a user manual. With Bitpanda Technology Solutions, we have created a software infrastructure as a service that allows our partner banks to digitally offer all assets to their clients. Rounded off with regulated and secure custody of all assets. We look forward to our joint journey – said Demuth.

As part of the agreement, Raiffeisen signed a letter of intent with Bitpanda. The evaluation process of the specific offering is expected to be completed by the end of the year.

The partnership comes just days after European Union lawmakers gave final approval to the long-awaited regulatory framework Markets in Crypto Assets (MiCA), which aims to establish a comprehensive regulatory framework for crypto assets, with a focus on consumer protection.

First proposed in December 2020, MiCA will bring new rules for the industry across the Union and is expected to be published in the EU Official Journal by summer. Provisions for stablecoins will be introduced by the end of June 2024. After that, provisions concerning crypto asset service providers are likely to be implemented by the end of next year.

This move is highlighted as a significant example of the EU’s changing approach to crypto regulation, contrasting with the U.S. method regarding law enforcement around the crypto industry.