Crypto bank SEBA Adds Custody Solutions for Ethereum NFTs

Crypto bank SEBA Adds Custody Solutions for Ethereum NFTs

SEBA bank, a licensed and supervised Swiss bank, has added an NFT custody solution that gives customers the ability to hold well-known Ethereum non-fungible tokens (NFTs) without managing private keys themselves.

The Zug, Switzerland-based bank is aiming to provide its customers with a secure service for storing any Ethereum-based NFTs without having to manage their private keys themselves.

Some of the most expensive NFTs, such as those in the CryptoPunk and Bored Ape collections, have often fetched seven-figure sums, with celebrities including Justin Bieber, Madonna and Eminem among the most noteworthy buyers.

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

Though the NFT market remains in decline from its peak in late 2021 and January of this year, assets are still attracting buyers. Monthly sales, for example, topped $947 million last month.

SEBA is looking to target specifically the so-called “blue-chip” portion of the market, meaning those NFT collections which are best-known and have consistently maintained a high market value such as CryptoPunks, Bored Apes, and Clone X.

Though trading volumes of blue chips dropped in the third quarter of this year, according to DappRadar data, their values have remained steady. 

The floor price of the top 11 blue-chip collections even rode out the liquidity crunch caused by Terra’s collapse. The floor price is the lowest price for an NFT in a collection.

“A lot of investors who held NFTs have continued to stay in the market showing conviction despite the market downturn,” the bank’s representative added. 

The 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,” added the representative. 

A custody service for institutional investors in the digital asset industry would be a natural move for a firm like SEBA Bank.

Founded in 2018, SEBA began life as a crypto banking service before expanding into offering crypto trading and custody for institutional investors. In 2019, it became the first digital asset company to receive a license from the Swiss Financial Market Supervisory Authority (FINMA) to offer banking and securities and services.

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