Key Takeaways
- The bank had extended its digital asset custody services to store any Ethereum-based, NFTs which includes Bored Apes and CryptoPunks.
- The NFT custody service comes as a response to the recent uptick in institutional investors plaguing the NFT space.
Leading Switzerland-based crypto bank SEBA bank to offer regulated custody to clients to store NFTs. The bank had extended its digital asset custody services to store any Ethereum-based non-fungible tokens (NFTs), which includes renowned collections like Bored Apes and CryptoPunks.
“SEBA Bank is proud to be the first regulated bank to offer NFT custody, and with NFTs custodied within their Swiss Bank account, clients can include them in the total wealth picture and manage them like any other digital asset,” the official press release reads.
With this move, the global crypto bank is looking to primarily target the “blue-chip” portion of the market, which are those projects that have demonstrated a high and stable market value over the trajectory of the NFT market, such as CryptoPunks, Bored Apes, and Clone X.
Commenting on the latest development, a SEBA spokesperson states the NFT custody service is a response to the uptick in institutional investors eyeing the NFT space. “More buttoned-up market participants also need a regulated custodian to ensure “the security and integrity of NFTs,” they said.
The rise of NFTs was meteoric last year, but it hasn’t been steady since then, and it appears have fallen sharply in 2022. According to the DappRadar analytics platform, the world’s largest NFT marketplace, OpenSea’s trading volume has dropped to 99% in four months between May and August this year. Experts attribute falling Ether prices, a lack of secondary market demand, and unrealistic gas fees as significant reasons behind the fall in NFT volume in recent months.
SEBA founded in 2018, was the first digital asset company to receive a license from the Swiss Financial Market Supervisory Authority to offer banking services. Over the years, the bank has expanded its regulated crypto offerings and closed a $120 million funding round in January 2022 primarily to accelerate its institutional business growth.
Earlier this year, SEBA bank also bagged permission to operate in Abu Dhabi Global Market (ADGM), which is also known as the financial center of the United Arab Emirates (UAE).
