The Swiss financial institution Seba Bank just announced the launch of a new custodial service that lets retail and institutional clients store tokens from Ethereum-based non-fungible token (NFTs) collections. It is now the first regulated bank to offer an NFT custodial service, according to a representative from the firm.
Beginning on October 26th, the bank’s customers can store tokens from Ethereum-based NFTs on the regulated custody platform. And the service isn’t limited to blue chip collections like Bored Ape Yacht Club and CryptoPunks — all Ethereum-based NFTs are accepted. However, the company will perform due diligence at the client’s request to decide whether to store the NFTs.
One benefit of the new custody platform is that customers can store their NFTs without the hassle of managing their own private keys. And since the NFTs will be integrated into the client’s bank accounts like any other digital asset, clients can show a more complete picture of their total wealth.
Seba Bank, based in Zug, Switzerland, is a major financial institution known for its crypto focus. According to the firm’s spokesperson, despite the downturn in the crypto and NFT markets in recent months, the bank is bullish on NFTs and digital assets in the coming years.
The move from Seba Bank to offer a regulated custodial service to its clients is part of its overall aim to “guarantee the security and integrity of NFTs” for investors. The firm also mentioned that many NFT investors have stayed in the market through recent tough times, indicating there’s conviction behind the early hype of NFTs.
Financial Institutions Are Innovating in Web3
Seba Bank’s new regulated custodial service is big news for NFT fans and the bank’s customers. But Seba Bank isn’t the only financial institution to innovate in Web3. Here at Rarity Sniper, we’ve written dozens of articles about banks and financial institutions investing in Web3. Here are our top three stories.
A few months ago, the Sumitomo Mitsui Banking Corporation, the second biggest banking institution in Japan, announced it was partnering with Hashport to build a wide range of crypto and NFT-related services for customers. The bank will be setting up a “token business lab” to conduct experiments related to decentralized finance.
Next, Sygnnum, another Swiss bank, decided to open up shop in the decentralized virtual world Decentraland. Now the bank can connect with clients interested in crypto and blockchain-based services and showcase its Web3 products and digital assets.
In a similar move, about two weeks ago the Commercial Bank International of Dubai opened a virtual branch in the Decentraland metaverse. With the move, it became the first United Arab Emirates bank to enter the metaverse.
Banks around the world betting on Web3 even in a bear market show that many people believe in the long-term success of crypto, NFTs, and digital assets. Seba Bank’s decision to launch a custody service for NFTs could be a pioneering move in the Web3 space. We’ll be looking out to see if more banks follow.