Swiss Seba Bank Launches NFT Custody Despite Market Decline

The decline in the NFT market does not appear to be a problem for Swiss cryptocurrency specialist bank Seba, which now offers NFT custody to its clients.

Seba Bank has launched a regulated custody platform for customers to hold NFTs, the company officially announced on October 26. On the NFT custody solution, private and institutional customers of Seba Bank can hold all Ethereum-based NFTs, including tokens from world-renowned NFT collections such as Bored Apes and CryptoPunks, according to the company.

“There is currently no marketplace integration with Seba Bank,” a company spokesperson told Cointelegraph. The firm also conducts due diligence before deciding whether or not to hold a particular NFT. “The management service is by no means limited to the most famous collections,” said the company’s representative.

Seba’s new NFT custody platform offers customers secure storage of their NFTs without having to manage the private keys themselves. The function is built into the customers’ bank accounts. This allows them to include their NFTs in the bigger picture of their wealth and manage them like any other digital asset.

A company representative stated that Seba Bank was “the first regulated bank to offer custody for NFTs” and expressed confidence in the future of NFTs:

“We believe that digital assets, including NFTs, will become more mainstream and increasingly accepted by traditional financial players in the coming years.”

Urs Bernegger, co-head of markets and investment solutions at Seba Bank, emphasized that Seba is regulated by the Swiss Financial Market Authority (FINMA) and has “core competence” in cryptocurrencies.

Headquartered in Verz, Seba Bank is a major cryptocurrency-focused financial institution in Switzerland, known for its close cooperation with local regulators. In 2019, Seba Crypto AG received a Swiss banking and securities dealer license from FINMA. In 2021, the supervisory authority also granted Seba Bank AG a license as a certified auditor for information systems. In this way, the company can also offer an institutional custody service.

NFT Custody at Seba Bank is launched at a difficult time for the NFT market. Weekly NFT trading volume has fallen 98 percent year-to-date to the end of September 2022. Average prices for NFTs have also fallen sharply. In September alone, trading volume fell by around 30 percent compared to August.

Source: Dune Analytics

On the other hand, the number of NFT wallets has increased this year. The number of wallets almost doubled from 3.4 million in January to 6.1 million in September.

Despite the downturn in the NFT market, many platforms and companies have recently launched NFT solutions. Last month, MetaMask Institutional, the institutional version of the MetaMask crypto wallet, announced NFT custody services.

“Many investors who have held NFTs have remained in the market despite the downturn in the market and remain confident,” a Seba spokesman said. According to the company, the NFT space continues to mature. Institutional investors are increasingly launching NFT funds and financing new projects. “SEBA Bank wants to meet the demand for a regulated custodian bank that can guarantee the safety and integrity of NFTs for professional and institutional investors,” the spokesperson concluded.

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