The prevailing crypto winter has restricted interest in development within the crypto space. This awareness has led SEBA Bank to engage HashKey Group to expedite digital asset uptake targeting institutions. The announcement by the SEBA Bank affirmed its crypto-focus, particularly by partnering with HashKey Group, a provider of financial services.
The partnership targets to offer customized solutions for institutional investors joining the crypto ecosystem. In particular, the two firms seek to accelerate the uptake of digital assets among institutions in Switzerland and Hong Kong. During the partnership announcement, the representatives of both companies reiterated their compliance with regulatory frameworks in the two jurisdictions.
HashKey Compatibility to SEBA Bank
SEBA Bank chief executive Franz Bergmueller acknowledged Hong Kong’s milestone in licensing crypto products. Bergmueller acknowledged the awareness of Hong Kong’s achievements in crypto and convinced SEBA Bank to pursue the digital asset ecosystem by partnering with HashKey.
HashKey chief executive Michel Lee affirmed the firm’s business model as a regulatory-first approach that orients all operations to compliance. Lee lauded SEBA Bank for establishing its operating model guided by similar principles.
Also read:The existing partnership coincides with HashKey’s recent success in securing Hong Kong’s operating license issued by the Securities and Futures Commission. Lee noted SEBA Bank’s capacity in institutional custodial services, having attained Switzerland’s digital asset license in 2021.
Concern for Missing Regulatory Clarity
Elsewhere, institutional investors are portraying to develop cold feet following the contagion wave within the crypto attributed to the FTX debacle. Most investors consider increased regulatory scrutiny inevitable to avoid a replica of Three Arrows Capital, Terra, and FTX Group crashes.
The apparent leap towards increased regulatory scrutiny garners support from institutional investors. In particular, Lee noted that the absence of regulatory clarity has kept most hedge funds at bay and disregards digital asset investments.
Regulatory Oversight Inevitable in Cryptos
The increased appetite for regulatory oversight in crypto-related activities will make the sector more attractive to institutional investors. Such awareness guided HashKey and SEBA Bank’s partnership to leverage and draw the early-mover benefits.
SEBA Bank and HashKey partnership is set to confirm a similar business relationship as the crypto industry recovers from the current winter. Previously, Nasdaq announced on September 20 the launching of custodial solutions targeting institutional Bitcoin and Ethereum holders that seek custody services.
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