A major Swiss Bank offers cryptocurrencies options to its clients. How does this impact the overall cryptocurrency and blockchain market?
February 26, 2019 | AtoZ Markets - Julius Baer, the third largest, and oldest Swiss private banks has entered into a partnership with a cryptocurrency banking startup, SEBA Crypto AG to offer digital asset services later in 2019. Both firms announced this on Tuesday.
This latest move by the Swiss private bank into the crypto industry will enable their customers to store, trade and invest in digital assets with the use of SEBA platform.
Swiss Bank offers cryptocurrencies
While confirming the news, the Head of Markets and board member at Julius Baer, Peter Gerlach stated;
“At Julius Baer, we are convinced that digital assets will become a legitimate sustainable asset class of an investor’s portfolio.”
The partnership with SEBA, however, will come into effect once it secures a banking and securities dealer license from the country’s financial regulator, the Financial Market Supervisory Authority (FINMA).
Once the license is obtained, it would allow SEBA to carry out crypto trading as well as investments business for other banks and professional investors.
Commenting on this recent development, Yury Safronau, Ph.D. in Finance and AtoZ Markets' Chief Currency Strategist commented:
"This is a good indication of an interest from institutional participants in blockchain technology. There is a trend of substantial interest from institutional investors, such as banks, in dealing with cryptocurrencies. Such trend occurs after a long period of bear market and can be a good indication of possible reverse. Obviously banks see an opportunity to make money from potential bull market in the near future."
SEBA files for FINMA license for Crypto Banking Operations
Meanwhile, SEBA's Crypto Bank roadmap shows that the firm has filed its application with FINMA in June 2018 and plans to go live with crypto banking operations in Q2 of 2019.
Furthermore, while the startup is looking to provide corporate financing, it is also making preparations for Initial Coin Offerings (ICOs) in Q3 as well as other crypto-related services to corporate clients. Regarding the project, the chairman of SEBA, Andreas Amschwand underlines:
“In Switzerland we have commitment from various authorities to establish a comprehensive regulatory environment for the development of blockchain technology and the sustainable, stable growth of crypto assets.”
Moreover, SEBA is purportedly making plans to spread its tentacles into major financial hubs this year, starting with Zurich.
It is worthy of note that Julius Baer’s move follows the launch of JP Morgan Chase's digital coin this month. In addition, Maerki Baumann Private Bank announced back in August 2017, that it would be accepting cryptocurrencies.
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