Crypto Firm Seba Bank Launches NFT Custody Despite Current Market Woes

UTC by Kofi Ansah · 3 min read
Crypto Firm Seba Bank Launches NFT Custody Despite Current Market Woes
Photo: Depositphotos

The new NFT custody platform from Seba Bank is designed to let users securely store their NFTs without having to deal with managing their own private keys.

Seba Bank has launched its first NFT service, an institutional-grade, certified, and independently audited hot and cold storage custody product for blue-chip NFTs.

The new service will now enable the Swiss bank’s retail and institutional clients to store tokens of Ethereum-based NFT collections including Bored Apes and CryptoPunks in the bank’s new custodial service.

The launch comes in response to requests from customers to keep their NFTs with the bank alongside other crypto assets, such as the already-approved Bored Ape Yacht Club, Cryptopunk, and Clone X NFTs. The bank stated that new collections will be added based on customer demand.

The new NFT custody platform from Seba Bank is designed to let users securely store their NFTs without having to deal with managing their own private keys.

The feature is integrated into customers’ bank accounts, allowing clients to include their NFTs in the overall wealth picture and manage them like any other digital asset.

“There is no marketplace integration with Seba Bank at this time,” a spokesperson for the firm told reporters. “The company will also perform due diligence by client’s request before deciding whether to provide custody for a certain NFT or not. The custody service offered is by no means restricted to top collections,” the firm’s representative added.

The representative also revealed that Seba Bank is the “first regulated bank to offer NFT custody. “We believe that in the coming years, digital assets, including NFTs, will gain adoption and will be increasingly accepted even by traditional finance operators,” the representative said.

Urs Bernegger, co-head of markets and investment solutions at Seba Bank, also highlighted a rising group of NFT owners who are more comfortable entrusting an institution with their NFTs and private keys.

“They don’t want the key because they don’t even know how to store the key and handle the key. They’re more afraid of doing something wrong with the key than giving it to a bank,” he stated.

Bernegger added that Seba Bank is subject to the Financial Market Supervisory Authority (FINMA) regulation in Switzerland and that it has “core competency” in the field of cryptocurrencies.

Seba Bank’s debut in the NFT space comes at a challenging time for the NFT business. The weekly NFT trading volumes has seen a dip as high as 98% from the beginning of the year as of late September 2022.

Seba Bank is a major crypto-focused financial institution in Switzerland, well-known for its strong cooperation with local regulators.

The firm’s headquarters is in Zug and received a Swiss banking and securities dealer license from FINMA in 2019.

Altcoin News, Blockchain News, Cryptocurrency news, News
Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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