Swiss Digital Asset Bank SEBA Launches Institutionally-Focused Crypto Yield Product

Switzerland; SOURCE: Shutterstock

Read the full article by Sam Reynolds here

Key points:

SEBA Earn will allow institutions to stake and earn yield on their digital assets.

With more and more institutions placing bitcoin on their balance sheet it begs the question of whether it creates yield or not?

SEBA’s product allows institutions to store their crypt and generate moderate amounts of yield via a Swiss-licensed institution.

“Institutions, ranging from our banking clients, funds, crypto platforms, and family offices have shown interest and are keen to engage with SEBA Bank in this new offering.”

“It is clear that as institutional interest in digital assets accelerates, investors have a broader appetite for crypto assets, with a particular interest in earning services like staking, DeFi and centralized crypto borrowing and lending,” Guido Buehler, CEO of SEBA Bank, said in a release.

In an email to Blockworks, Buehler did note that Ethereum 2.0 staking isn’t currently supported, and new coins would be added according to client demand. The bank also said that it plans to provide lending services in the near future.

SEBA joins a growing list of digital asset focused banks that have begun institutional outreach.

My take:

The institutional demand for bitcoin exists which will eventually lead to more stability. Meaning possibly less volatility and less of a chance to make those aggressive gains Bitcoin has displayed before. Not saying any of this will happen today, tomorrow or anytime soon but it is interesting to think about what institutions will do with their crypto when and if market volatility eventually declines.