Customers of the FINMA-licensed SEBA bank will soon offer support for centralized borrowing and lending services to enable investors to generate yield by lending Ethereum or Bitcoin directly with the bank.
Digital asset banking platform SEBA Bank, duly licensed by Switzerland’s Financial Market Supervisory Authority (FINMA), launched the SEBA earn on Wednesday, October 13, 2021. The bank termed the new product “an institutional-grade solution enabling clients to earn a yield on their crypto holdings.”
Planned on integrating support for other cryptocurrencies
As per the announcement, the bank would let investors use its Bitcoin (BTC) and Ether (ETH) lending services to generate yields as part of its SEBA Earn program. According to the bank, which focuses on offering digital assets, it planned on integrating support for other cryptocurrencies. SEBA Bank CEO Guido Buehler:
“As institutional interest in digital assets accelerates, investors have a broader appetite for crypto assets, with a particular interest in earning services such as staking, DeFi, and centralized crypto borrowing and lending.”
The bank noted that the initiative resulted from a growing demand from institutions to manage a range of digital asset yield use cases from Decentralized Finance (DeFi) to staking and centralized lending and borrowing. Currently, SEBA customers can generate yields on Polkadot’s DOT, Tezos (XTZ), and Cardano (ADA). However, the bank has announced it will be adding more proof-of-stake protocols in the coming months. The bank elaborated:
“SEBA Earn’s comprehensive staking management platform will enable institutions and individuals to generate rewards from their crypto investment on networks including Tezos, Polkadot, and Cardano, with more protocols coming in the coming months […] SEBA Earn will also provide support for centralized lending and borrowing services, enabling investors to generate yield by lending Bitcoin and Ethereum directly with SEBA Bank.”
SEBA took part in its experimental digital Euro pilot project
SEBA is among the pioneer banks focusing on cryptocurrencies that FINMA licensed in 2019. The bank has been involved in the crypto space since it was founded in 2018. The Bank of France recently selected SEBA to take part in its experimental digital Euro pilot project to test the feasibility of Central Bank Digital Currencies for cross-border payments. The announcement comes only weeks after the crypto-friendly country approved its first crypto investment fund.
Tom is a long-serving freelance writer who specializes in the blockchain and cryptocurrency niche. You may even call him a crypto-enthusiast with over 10-years’ experience in content creation, blog writing, and SEO. He is a philosophical figurehead who believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.