Swiss Seba Bank launches NFT custody despite market decline

The decline of the nonfungible tokens (NFT) market doesn’t appear to be an issue for the Swiss cryptocurrency-focused financial institution Seba because the agency now permits its clients to retailer NFTs.

Seba Financial institution has launched a regulated custody platform permitting its shoppers to retailer NFTs, the agency formally introduced on Oct. 26. The NFT custody resolution permits Seba Financial institution’s retail and institutional shoppers to retailer any Ethereum-based NFTs, together with tokens from world-famous NFT collections like Bored Apes and CryptoPunks, the agency stated.

“There is no such thing as a market integration with Seba Financial institution at the moment,” a spokesperson for the agency instructed Cointelegraph. The corporate may also carry out due diligence by consumer’s request earlier than deciding whether or not to offer custody for a sure NFT or not. “The custody service supplied is certainly not restricted to prime collections,” the agency’s consultant said. 

Seba’s new NFT custody platform is designed to offer its clients with safe storage of their NFTs with out managing the non-public keys themselves. The function is built-in into clients’ financial institution accounts, permitting shoppers to incorporate their NFTs within the complete wealth image and handle them like every other digital asset.

A consultant on the agency identified that Seba Financial institution is the “first regulated financial institution to supply NFT custody,” expressing confidence in a brilliant way forward for NFTs, stating:

“We imagine that within the coming years, digital property, together with NFTs, will acquire adoption and will probably be more and more accepted even by conventional finance operators.”

Urs Bernegger, co-head of markets and funding options at Seba Financial institution, confused that Seba is regulated by Swiss Monetary Market Supervisory Authority (FINMA) and has “core competence” in cryptocurrencies.

Headquartered in Zug, Seba Financial institution is a serious crypto-focused monetary establishment in Switzerland, recognized for its shut cooperation with native regulators. In 2019, Seba Crypto AG acquired a Swiss banking and securities supplier license from FINMA. In 2021, the regulator additionally granted Seba Financial institution AG with a Licensed Info Methods Auditor license, permitting the agency to facilitate an institutional-grade custodian service.

Seba Financial institution’s NFT custody launch comes amid robust instances for the NFT market. The weekly NFT buying and selling volumes plummeted as a lot as 98% from the start of the yr as of late September 2022. The median worth of an NFT has additionally fallen sharply, whereas the general NFT market continued to worsen additional as the typical NFT weekly buying and selling quantity fell by about 30% In September versus its August.

Supply: Dune Analytics

Alternatively, the variety of NFT wallets has been rising this yr, with the quantity of such wallets virtually doubling from 3.4 million in January to six.1 million in September.

Associated: Institutional crypto custody: How banks are housing digital property

Regardless of the NFT market downturn, many platforms and firms have been rolling out NFT-related options lately. Final month, MetaMask Institutional — the institution-compliant model of the MetaMask crypto pockets — introduced the NFT addition to its custodial companies choices.

“A number of traders who held NFTs have continued to remain out there exhibiting conviction regardless of the market downturn,” a spokesperson for Seba famous. Based on the agency, the NFT house has continued to mature, with institutional traders launching NFT funds and financing new initiatives. “SEBA Financial institution is addressing the necessity for a regulated custodian that may assure the safety and integrity of NFTs for skilled and institutional traders,” the individual added.

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