Swiss’ SEBA Bank Launches Regulated Custody Services for Blue Chip NFTs
Nicholas Otieno Oct 26, 2022 18:45
SEBA bank has expanded the reach of its crypto offerings with a new service dedicated to custody for NFTs
SEBA bank, a crypto-friendly bank in Zug, Switzerland, on Wednesday, announced the launch of an NFT custody solution that gives customers the ability to hold Non-Fungible Tokens (NFTs) without the hassle of managing private keys themselves.
The Swiss bank said the new service is set to enable customers to store any Ethereum-based NFTs, especially blue-chip NFTs – those that are best-known and have consistently maintained a high market value such as CryptoPunks, Bored Apes, and Clone X.
SEBA Bank said the custody solution provides its clients with absolute confidence in the security of their NFTs, managed like any other digital asset.
Although the NFT market remains down from its peak in late 2021 and early this year, the assets are still attracting buyers.
Blue chip NFTs, which are often considered a good long-term investment, marked their best performance in April while May and June were their worst-performing periods in blue chip NFT history.
Sales of NFTs declined sharply in the third quarter, as crypto investors’ purchasing actions have been cooled down by crypto winter while central bank rate hikes prompt investors to ditch risky assets.
According to blockchain tracker DappRadar, the third quarter of this year recorded $3.4 billion in NFT sales, down from $8.4 billion the previous quarter and $12.5 billion at the market's peak in the first quarter of the year.
Despite many NFT investors making losses on sale trades currently, the number of investors that hold their NFT investments continues to rise. In June and July alone, nearly 500,000 users joined the growing pool of NFT investors who intend to hold for the long term, taking the number of holders above 3 million at that time.
SEBA’s NFT custody service is a response to the increase in institutional investors looking to invest in the NFT landscape. A spokesperson from SEBA Bank further disclosed that major market participants also need a regulated custodian to ensure the security and integrity of NFTs.
At first, SEBA said its custody offering is open for existing and new customers who must be institutional or professional investors.
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