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- Swiss crypto-centric bank, Seba Bank, has introduced storage for NFTs, a first for a major financial institution. Find out what it means.
Swiss cryptocurrency-focused bank Seba Bank has launched its first NFT solution, a hot/cold storage custody service for high-value NFTs that have undergone an independent audit and certification. According to the institution, clients have been asking for the option to store NFTs at the bank alongside other crypto assets like the Bored Ape Yacht Club NFT, Cryptopunk NFT, and Clone X NFT. Therefore, the launch is in response to that demand. By releasing this product, Seba Bank hopes to attract crypto industry veterans as well as those who regard NFTs as a legitimate asset class.
A first for a major financial institution and Seba Bank’s plan for NFTs
There has been a rise in the number of service providers who accept NFTs as collateral for more traditional banking services like loans. Consequently, native crypto users may also benefit from institutional custody. Interestingly, Seba Bank doesn’t appear to be affected by the 2022 downturn of the NFT market. Furthermore, institutional investors have launched NFT funds and financed new projects in the NFT sector, demonstrating its continuous maturation despite the market’s volatility.
Before deciding whether or not to grant custody for a particular NFT, the company will do due diligence on the customer’s behalf if the customer makes such a request. The bank maintains that its custody service is not limited to only the most valuable collections. Additionally, there is currently no integration with the market. Because NFT storage is built into user accounts, NFTs can be considered part of a user’s overall wealth. Also, the account holder can manage the NFT in the same way as any other supported assets.
In a statement released by the bank, Urs Bernegger, Co-Head of Markets & Investment Solutions at SEBA Bank, remarked:
“The range of services combined with the highest security standards makes SEBA Bank’s service offering unique, and we are very pleased to be able to support our clients with our expertise in expanding our service by offering NFT custody.”
Seba Bank, a major crypto-focused financial institution, is regulated by the Swiss Financial Market Supervisory Authority (FINMA).