Switzerland-based SEBA Bank, a leading global bank for the crypto sector, has launched a custody service for blue chip NFTs. The bank, which focuses on offering regulated banking services in the crypto world, will offer institutional-grade custody solutions needed to secure clients’ NFTs.
First NFT Service
While SEBA Bank has been in the crypto sector for a while, this is its first NFT-based service. It is a testament to the growing value of the NFT industry. Its NFT custody service will offer institutional-grade protection. It is certified and independently audited.
The custody service will roll out today, Wednesday, October 26, 2022. It is in response to client demands for secure storage service for valuable NFTs. The bank currently supports renowned collections such as Cryptopunks, Clone X NFTS, Bored Ape Yacht Club, and others. With time, the bank will approve its custody service for many other NFT collections. Its goal with this service is to appeal to investors who view NFTs as an asset class and crypto natives.
How It Will Overcome Hesitation
Self-custody is popular in the crypto world. There is a popular mantra that goes “not your keys, not your crypto.” Many who believe in this mantra might hesitate to hand over their assets to SEBA Bank for storage.
However, Urs Bernegger, co-head of markets and investment solutions at the bank, believes there is a growing clique that feels comfortable using institutional custody services to store their NFTs. According to Bernegger, these people do not want to hold their NFTs since they do not know how to handle or store private keys.
According to a study by Chainalysis, close to 3.7 million BTC has been lost in inaccessible wallets. People have lost millions after losing their private keys. In some cases, families have been disinherited millions of dollars after the sudden death of the holder of private keys.
Besides this group, institutional custody solutions can benefit crypto natives, according to Bernegger. He noted that a growing group of companies was offering financial services, with NFTs acting as collateral. For instance, some lenders now accept NFTs as collateral.
In the future, SEBA Bank could offer similar services. The bank, based in the crypto-friendly Swiss town of Zug, offers various crypto-related solutions that could extend to NFT holders. Since its founding four years ago, the bank has continued to grow despite the turmoil in the crypto markets.
One of the proposals the bank is looking at is launching a service that lets NFT collectors find other collectors directly instead of going through the crypto markets. For now, they are setting the foundation with secure NFT custody solutions.
Growing NFT Sector
SEBA Bank’s new service is based on real-world demand. In Q3 2022, data shows that 2.2 million unique investors are in the NFT markets. It represents a 36% increase from the same time in 2021. NFTs have disrupted various sectors, including the art world, gaming, and the investment world. Strong communities have mushroomed around the technology, which has enormous potential. There is apparent demand for a trusted custody solution, and SEBA Bank will capitalize on this demand.
