Julius Baer, the third largest private bank in Switzerland announced on February 26 that it would collaborate with SEBA, a cryptocurrency banking company. Their partnership will allow digital assets services to be offered to Julius Baer clients. However, this alliance will only be formed after Switzerland’s financial market supervisor has approved SEBA.
Enabling Customers to Store, Trade, and Invest Digital Assets
Per the press release, Julius Baer will be partnering with SEBA Crypto AG to allow its clients to store, transact, and invest virtual currencies. According to the Zurich-based bank, it is in a bid to meet the increasing demand by customers. Thus, they will use SEBA’s innovative platform and capabilities to provide people with solutions relating to digital assets.
Peter Gerlach, Head Markets at Julius Baer who made comments said the bank is convinced that virtual currencies “will become a legitimate, sustainable asset class of an investor’s portfolio.” He added that investing and partnering with SEBA shows that the bank is engaged with digital assets. It also proves their dedication in making a pioneering innovation accessible to clients.
On the other hand, Guido Buehler, CEO SEBA, said:
We are very proud to have Julius Baer as an investor. SEBA will enable easy and safe access to the crypto world in a fully regulated environment. The cooperation between SEBA and Julius Baer will undoubtedly create value for the mutual benefit and to the clients.
Partnership Will be Formed After SEBA’s Approval by FINMA
Nevertheless, the partnership will be formed after SEBA has been granted a FINMA banking and securities dealer license. In the same vein, the financial institution has not revealed the cryptocurrencies that will be supported. It is also worthy to note that the bank has a minority equity stake in Seba; an investment which was made in 2018.
Switzerland, unlike some countries, has legalized the use of cryptocurrencies. Despite this, some companies in the industry are still facing difficulties in opening a bank account in the area. Bankers and investors who manage these assets have also complained about the lack of clarity in regulations. That being the case, allowing the storage and trade of assets by Julius Baer takes away one of these limitations.
Julius Baer Joins Other Financial Institutions Supporting Crypto
The 125-year-old bank now joins other financial institutions that have made plans to adopt blockchain, the underlying technology of cryptocurrencies. On February 15, BTCNN revealed that JPMorgan, a financial institution has launched its own digital asset. In the same vein, Falcon, a Swiss bank allowed private and institutional investors to store and trade Bitcoin, Ether, and Litecoin.
BTCNN on December 5 reported the same about two banks in Latin America, Itaú Unibanco Holding SA and Standard Chartered who have made plans to create a Blockchain-based platform for issuing loans. Banco BTG Pactual SA, the biggest investment bank in Latin America also wants to launch a cryptocurrency.