By George Ward
A Switzerland bank that supports cryptocurrencies, SEBA, has revealed that it is releasing an Institutional custody service for non-fungible tokens (NFTs) built on the Ethereum Blockchain network.
The latest custody service will allow big clients to hold their top NFTs with the bank.
SEBA Bank And Ethereum-Based NFTs
Based on the recent announcement, Institutional investors can hold NFTs from well-known NTF collectors without managing the private keys.
However, the service will only be available for NFTs built on the Ethereum Blockchain network. They include many top NTFs collections like CryptoPunks and Bored Ape Yacht Club.
One SEBA bank spokesperson admitted that the financial institution is glad to become the first regulated financial firm to offer NFT custody service.
The spokesperson said: “SEBA bank is delighted to be the pioneer bank with the license to provide NFT custody service. We expect that in the future, digital assets such as crypto and NFTs will get more adoption and will be massively accepted by the traditional finance corporations.”
NFT Industry In Decline?
The NFT industry peaked in late 2021 and the beginning of 2022 when it got a lot of interest from institutional investors. However, the market has dropped in value, but buyers are still attracted to buy more NFTs, with monthly sales of up to $950 million as of September 2022.
On the other hand, SEBA bank is focusing on blue-chip NFT projects. However, not every NFT in the marketplace belongs to this category. They are the only NFT collections that have repeatedly stayed at a high value even when the marketing is experiencing a bearish movement.
According to recent data released by DappRadar, the trading volume of these blue chip NFT collections has declined, but their value is still the same. Even after the Terra ecosystem collapsed, the floor price of these blue-chip NFT collections stayed high.
A Slow Boost In Demand
Based on the statements of a SEBA bank rep, the financial house wanted to release the custody service as a response to the growth in Institutional investors entering the NFT market.
The bank revealed that Institutional investors need a regulated custodian for their NFTs to secure their artworks and ensure integrity. However, the NFT custody service is only available to SEBA bank’s new and existing customers.
Also, interested clients must be institutional investors to get accepted. While SEBA bank is making moves in the cryptocurrency industry, some crypto banks are declaring insolvency.
Recently, a crypto bank in Germany, Nuri, filed for bankruptcy.