Swiss-based cryptocurrency startup SEBA Crypto AG has raised $103 million to establish a bank that will offer cryptocurrency services and bridge the gap between cryptocurrencies and fiat being experienced by cryptocurrency firms and investors.
Once given a license to operate the bank, the company plans to offer accounts denominated in both cryptocurrency and fiat, cryptocurrency custody services, trading and liquidity management for cryptocurrency assets and fiat, asset and investment management of cryptocurrency and traditional equity products, as well as other crypto corporate finance services including ICO fundraising advice, token design, risk management.
The bank will also extend traditional banking services to firms in the cryptocurrency space. SEBA is currently working with Swiss financial market supervisor FINMA to obtain licenses on the matter and Reuters said that FINMA has confirmed the news.
It is expected that the new banking service tailored specifically for cryptocurrencies, will help to solve the current owes for the cryptocurrency industry in Swiss's Zug, Zurich, and other places. Even as the regions sought to become hubs for cryptocurrency companies and investments and now hosting more than 500 blockchain crypto firms, many regular banks were reportedly struggling in offering services to crypto firms claiming that offering these services would mean they would not be compliant with regulatory requirements and checks required in traditional banking. Meanwhile, regulation has been improving day by day to see legacy banks offering these services to cryptocurrency companies in a regulated environment.
The situation was worsening with some firms moving out of the country, until recently when Maerki Baumann, a Swiss bank, announced it will partner with crypto firms to offer accounts to them whether the funds are generated through speculative transactions or through payment for services or from mining profits. Nevertheless, the region is still showing some good leadership on how banks and regulators can come together to deal with cryptocurrencies and allow its usage even on legacy systems.
The two -- SEBA and Maerki Baumann -- will join some other few Swiss banks including Falcon Private Bank, Hypothekarbank Lenzburg bank and Bank Frick of Lichtenstein.