Austrian banking group RLB NÖ-Wien to launch crypto investment services with Bitpanda

Austria’s cooperative banking corporation – Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien) – has partnered with Bitpanda to deploy crypto investment services through the latter’s Software as a Service (SaaS) offering.

Through this collaboration, RLB NÖ-Wien has become the first major traditional bank in the European Union to engage in digital assets.

The partnership

Along with crypto investments, the Austrian company will also focus on potential implementation of stocks and ETFs, crypto, commodities, as well as precious metals as part of its offering with a budget of as little more than one euro. The main goal is to help bank customers “achieve their financial ambitions”, the official said. Press release noted.

Bitpanda CEO Eric Demuth highlighted the complexity and lack of inclusiveness of the financial market. The executive, in a statement, said the company intends to simplify the process and make investing accessible to everyone.

“These are simple, intuitive products that don’t require instructions. With Bitpanda Technology Solutions, we have created a software-as-a-service infrastructure that enables our partner banks to offer all assets digitally to their customers. Complemented by regulated and secure custody of all assets. We look forward to our common path.

As part of the deal, RLB NÖ-Wien signed a letter of intent with Bitpanda. The process of evaluating a concrete offer should be completed by the end of the year.

Addressing the Crypto Regulatory Landscape

The partnership comes days after European Union (EU) lawmakers made their final decision approval the long-awaited regulatory framework – Market in Cryptoassets (MiCA) – which aims to establish a comprehensive regulatory framework for crypto-assets, focusing on disclosure and consumer protection.

First proposed in December 2020, the MiCA will introduce new rules for industry across the bloc and is expected to be published in the Official Journal of the EU this summer. The provisions for stablecoins will be rolled out at the end of June 2024. Thereafter, the provisions guiding crypto asset service providers are expected to be implemented by the end of next year.

The move is being touted as a notable example of the EU’s evolutionary approach to crypto regulation, which contrasts with the US’ method of regulation-by-enforcement.