Regulated Custody Services Made Available by SEBA Bank to Blue Chip NFTs
New York City: SEBA Bank, a corporation that deals in cryptocurrencies, has introduced its first NFT service. This service is a blue chip NFT-specific institutional-grade hot and cold storage custody solution that is certified and independently audited.
The NFT market is continuously expanding and has reached a more mature stage as it has reached 2.2 million unique investors in the asset class as of the third quarter of 2022. This is a 36% increase over the same time period in 2021. Customers of SEBA Bank have the ability to securely hold any Ethereum-based (ERC-721) non-fungible tokens (NFTs), including well-known collections like as Bored Apes, CryptoPunks, and Clone X, thanks to the institutional-grade custody system offered by SEBA Bank. Because SEBA Bank provides its customers with a custody service, those customers may have full confidence in the safety of their non-fiat currencies (NFTs) without having to deal with the hassle of managing their private keys.
The introduction was spurred on by requests from customers. The rollout is in response to demands from clients to maintain their NFTs with the bank alongside different crypto assets. These crypto assets include the already-approved Bored Ape Yacht Club, Cryptopunk, and Clone X NFTs. Customers have been asking for this capability for some time.
With its most recent offering, Seba Bank hopes to pique the interest of crypto natives as well as investors who consider NFTs to be an asset class. ‘Not your keys, not your bitcoin’ is a well-known statement in the cryptosphere, and followers to this philosophy might object to having their Apes or Punks held with a third-party custodian. The term was coined by Satoshi Nakamoto.
Bernegger, who is co-head of markets and investment management at SEBA Bank, highlighted a growing group of NFT holders who are more at comfortable giving up their NFTs and private keys to a corporation. Bernegger says this group is indicative of a shift in the industry.
There are between 2.3 million and 3.7 million bitcoins that are locked up in wallets that cannot be accessed. There have been several reports of individuals losing millions of dollars due to the loss of private keys. These persons include Russian politicians, students, and engineers. Families have also been barred from accessing significant amounts of money after the deaths of wallet owners who have not provided their private keys to the families of their loved ones.Bernegger contends that consumers of native cryptocurrencies may also benefit from institutional custody in certain circumstances. There has been a rise in the number of companies offering services that use non-traditional financial assets (NFTs) as collateral for traditional banking services such as loans.
The SEBA Bank is contemplating integrating these functionalities at some point in the near or distant future. The bank, which has only been around for four years and has its headquarters in the cryptocurrency-friendly Swiss town of Zug, currently supports a number of choices for investing, crediting, lending, and staking digital currencies, and it may expand these options to include NFTs.