The new nonfungible token (NFT) custody platform from Seba Bank is designed to let users securely store their NFTs without needing to deal with managing their private keys.
Seba Bank has unleashed its first NFT service, as an institutional-grade, certified, and independently audited cold and hot storage custody product for blue chip NFTs.
This new service will enable the Swiss bank’s retail and institutional clients to store tokens of Ethereum-based NFT collections including the Bored Apes and CryptoPunks in the bank’s new custodial service.
Notably, the launch comes in response to requests from clients to keep their NFTs with the bank together with other crypto assets, including the already-approved CryptoPunk, Bored Ape Yacht Club, and Clone X NFTs. The bank said that new collections will get added based on client demand.
The new NFT custody platform from Seba Bank is designed to let users securely store their NFTs without having to deal with managing their private keys. This feature is integrated into clients’ bank accounts, enabling clients to include their NFTs in the general wealth picture and manage them just like any other digital asset.
A spokesperson for the company told reporters:
“There is no marketplace integration with Seba Bank at this time. The company will also perform due diligence at the client’s request before deciding whether to provide custody for a certain NFT or not. The custody service offered is by no means restricted to top collections.”
The representative also said that Seba Bank is the first regulated bank that is offering NFT custody. The representative commented:
“We believe that in the coming years, digital assets, including NFTs, will gain adoption and will be increasingly accepted even by traditional finance operators.”
The co-head of markets and investment solutions at Seba Bank, Urs Bernegger, also highlighted a growing group of NFT owners who are more comfortable entrusting an institution with their nonfungible tokens and private keys. He stated:
“They don’t want the key because they don’t even know how to store the key and handle the key. They’re more afraid of doing something wrong with the key than giving it to a bank.”
Bernegger also said that Seba Bank is subject to the Financial Market Supervisory Authority (FINMA) regulation within Switzerland and that it has “core competency” in the crypto space.
Seba Bank’s debut in the nonfungible token space comes at a challenging time for the NFT business. In that context, the NFT trading volumes have seen a drop as high as 98% from the start of the year as of late September 2022.
Seba Bank is a major crypto-focused financial institution in Switzerland, renowned for its strong cooperation with local regulators. The company’s headquarters is in Zug and got a Swiss banking and securities dealer license from FINMA in 2019.
