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A crypto-friendly bank based in Switzerland, SEBA, has announced that it is launching an institutional custody service for Ethereum-based NFTs.
The newly launched custody service will allow Institutional investors to hold their Bored Ape Yacht Club and CryptoPunks NFTs with the bank.
A Solution For Ethereum-Based NFTs
SEBA Bank has announced that it is launching an NFT custody solution, allowing users to hold NFTs from prominent collections without managing the private keys. The service is available only for Ethereum-based NFTs, which includes several popular collections such as CryptoPunks and Bored Ape Yacht Club. A spokesperson for SEBA Bank stated that the bank was delighted to become the first regulated financial institution to offer NFT custody services.
“SEBA Bank is proud to be the first regulated bank to offer NFT custody, and we believe that in the coming years, digital assets, including NFTs, will gain adoption and will be increasingly accepted even by traditional finance operators.”
NFT Market In Decline?
The NFT market hit its peak in late 2021 and early 2022, during a period that saw staggering interest in the assets. However, although the market has tailed off, NFTs are still attracting buyers, with monthly sales reaching nearly $950 million in the last month. SEBA, on its part, is targeting the blue-chip NFT projects. Blue chip NFT projects are those projects that are made up of NFT collections that have consistently maintained a high value, even during the market downturn.
Data from DappRadar has shown that while trading volumes of these blue chip NFT projects have dropped, their value has remained consistent. In fact, the floor price of these blue chip collections endured even after the Terra collapse. The floor price refers to the lowest price of an NFT or NFT collection.
A Slow Uptick In Demand
According to a representative of SEBA Bank, the bank decided to launch the custody service as a response to the increase in institutional investors eyeing the space. According to the bank, institutional investors require a regulated custodian for their NFTs to better ensure their security and integrity. While the service is available to the bank’s existing and new customers, clients wishing to avail of this service must be professional or institutional investors.
“A lot of investors who held NFTs have continued to stay in the market showing conviction despite the market downturn.”
Meanwhile, Abra, a financial services and trading firm, recently announced that it would be launching a US Chartered crypto bank, offering yield on crypto deposited by its customers. However, despite SEBA and Abra making moves in the market, German crypto bank Nuri filed for bankruptcy back in August, citing a prolonged crypto winter.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.