Quick Summary:
- SEBA Bank is proud to be the first regulated bank to offer NFT custody.
- SEBA is focusing only on non-market sensible NFTs – blue-chip projects.
Related: What is Defi – decentralized finance and the future of banking?
The SEBA Bank has announced the launch of its NFT custody solution, which allows users to store NFTs without managing their private keys. In addition to CryptoPunks and Bored Ape Yacht Club, the service is only available for Ethereum-based NFTs. In a statement, SEBA Bank said it was delighted to become the first regulated financial institution to offer NFT custody.
Are NFTs in decline?
Late 2021 and early 2022 were the peaks of the NFT market, during which huge interest in the assets was witnessed. NFTs, however, continue to attract buyers, with sales of nearly $950 million in the last month, despite the market’s decline. SEBA, for its part, is focusing on blue-chip NFT projects. A blue chip NFT project consists of NFT collections that have consistently maintained a high value, regardless of market conditions.
The value of these blue chip NFT projects has remained constant despite a drop in trading volumes, according to data from DappRadar. Even after Terra collapsed, the floor price of these blue chip collections remained unchanged. A floor price is the lowest price of an NFT or NFT collection.
“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.“
Demand is slowly increasing
According to a representative, the bank launched the custody service in response to the growing interest from institutional investors. Banks believe institutional investors need regulated custodians for their NFTs to ensure security and integrity. Despite being available to existing and new customers of the bank, this service is only available to professional or institutional investors.
“A lot of investors who held NFTs have continued to stay in the market showing conviction despite the market downturn.”
In the meantime, Abra, a financial services and trading firm, recently announced that it would launch a crypto bank, offering yield on crypto deposits. And those would be made by its customers. Abra and SEBA have made moves in the market, but Nuri, a German crypto bank, filed for bankruptcy in August.
Conclusion:
It is great to see international entities like banks becoming crypto-friendly. It is just a start and we can expect a lot more momentum in the industry.
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.
