September 27, 2018 9:42 PM
If successful, the new bank could provide the cryptocurrency industry with in-demand banking services while simultaneously helping it integrate with the traditional banking sector.
SEBA Crypto AG, a startup led by ex-managers of Swiss investment bank UBS, has raised over $100 million to create a bank that will offer both cryptocurrency and traditional banking services to blockchain and cryptocurrency startups.
Based in Switzerland's "Crypto Valley," a thriving hub[1] for FinTech and cryptocurrency firms and a very early welcoming climate for such startups, SEBA Crypto AG has raised funds from institutional and private investors, including Black River Asset Management and Summer Capital.
The startup aims to become one of the first regulated banks to allow fiat and cryptocurrency trading, feature cryptocurrency investment services, and provide traditional banking services to cryptocurrency and blockchain firms. It will also offer corporate financing and advice on initial coin offerings (ICOs) and other banking services.
Currently, some cryptocurrency companies are finding it difficult to access traditional banking services, leaving a niche for startups like SEBA Crypto AG to support these new companies.
A Brazilian watchdog agency, for example, is currently investigating the country's largest banks for monopolistic practices[2] of restricting cryptocurrency firms by refusing traditional banking services. In France, a new ICO framework[3] specifically protects the rights of authorized cryptocurrency companies to access traditional banking services in order to better serve cryptocurrency investors.
SEBA Crypto AG has applied for a banking and securities dealer license from the Swiss Financial Market Supervisory Authority (FINMA). Reuters[4] has confirmed with FINMA that it is in talks with SEBA about the license application process.
The project's leading managers, boasting their traditional banking experience with UBS, are chief executive Guido Buehler and chairman
