Seba Bank Launches Regulated Custody Platform To Allow Its Clients To Store NFTs
Seba Bank, the Swiss cryptocurrency-focused bank, has launched a regulated custody platform allowing its clients to store nonfungible tokens (NFTs).
It has been reported that the NFT custody solution enables Seba Bank’s retail and institutional clients to store any Ethereum-based NFTs, including tokens from world-famous NFT collections like Bored Ape Yacht Club and CryptoPunks, the firm said.
A spokesperson for the firm said:
“There is no marketplace integration with Seba Bank at this time. The custody service offered is by no means restricted to top collections.”
However, the company will also perform due diligence at the client’s request before deciding whether to provide custody for a certain NFT or not. Seba’s new NFT custody platform is designed to provide its customers with secure storage for their NFTs without managing the private keys themselves. The feature is integrated into customers’ bank accounts, allowing clients to include their NFTs in their total wealth picture and manage them like any other digital asset.
Urs Bernegger, the co-head of markets and investment solutions at Seba Bank, stressed that Seba is regulated by the Swiss Financial Market Supervisory Authority (FINMA) and has “core competence” in cryptocurrencies.
The report said that headquartered in Zug, Seba Bank is a major crypto-focused financial institution in Switzerland, known for its close cooperation with local regulators. In 2019, Seba Crypto AG received a Swiss banking and securities dealer license from FINMA.
In 2021, the regulator also granted Seba Bank AG a certified information system auditor license, allowing the firm to facilitate an institutional-grade custodian service.
Thus, Seba Bank’s NFT custody launch comes amid tough times for the NFT market. Weekly NFT trading volumes plummeted as much as 98% between the beginning of the year and late September 2022, with September down 30% from August. The median price of NFTs has also fallen sharply.