Cryptocurrency market is slowly moving towards the banking sector. A few days ago, there were reports about JPMorgan Chase, the largest bank in the United States, preparing to enter the crypto world by launching its very own digital coin- “JPM.” Following that is one of the biggest private banks in Switzerland, Julius Baer, has partnered with a cryptocurrency banking startup, SEBA, to provide the clients access to digital currencies. SEBA Crypto AG is a bank that primarily focuses on cryptocurrency, based in Switzerland; it raised over $103 million in September 2018.
In the past few months, the largest financial institutions in the global market like Fidelity, Nasdaq, and ICE have been reinforcing their infrastructure to support cryptocurrencies. Following these institutions is the fourth largest financial conglomerate, Julius Baer. This step would strengthen and accelerate the growth of awareness of crypto assets.
The company stated that SEBA’s innovative platform would be put to use for the clients to access the cryptocurrencies and the company would deal with the growing demand for digital assets. The partnership has been confirmed, and the arrangement will become operational after SEBA receives a banking and securities dealer license from the Financial Market Supervisory Authority (FINMA) – the country’s financial regulator, which is scheduled for June 2019.
According to Peter Gerlach, Head Markets at Julius Baer and a proposed member to the board of directors of SEBA,
“Members of Julius Baer believes that these digital assets will be able , and the investment into SEBA proves the company’s intent engagement in the area of digital assets and also the dedication to make the new ideas and methods available to the benefit of the clients.”
CEO of SEBA, Guido Buehler stated that
“Julius Baer’s partnership with SEBA is gratifying and that SEBA would work towards easy and secure access for the company into the crypto world under a fully controlled environment, in order to create value for the mutual benefit and to the clients.”
Due to the participation of high-profile individuals in the Swiss financial sector and private banks like Julius Baer, the launch of SEBA was highly looked upon by the investors in the cryptocurrency community. Especially, this agreement with Julius Baer is expected to lead to rapid growth of the company and an increase in the count of financial institutions working with SEBA. SEBA chairman, Andreas Amschwand said that
“In Switzerland, SEBA has assurance from various authorities to build an all-inclusive controlled environment for developing the blockchain technology and balanced, secured growth of crypto assets.”
Similar to countries like Japan, the U.S., South Korea, Malta and Singapore, Switzerland has been a leading nation contributing towards blockchain development and cryptocurrency adoption. In addition, the integration of cryptocurrency services by one of the largest private banks will further approve the asset class to both- the investors in the cryptocurrency market and the investors in the banking and financial sector.
eToro’s senior market analyst, Mati Greenspan observed that participation of institutions in the cryptocurrency market has considerably increased since the beginning of 2019 and the adherence of these major financial institutions to the crypto market occurs only during the time period when the 15-month bear market of digital assets is hitting rock bottom. He stated that :
“the major players have finally realized that crypto’s bear market is coming to an end and are now enhancing their infrastructure to meet the next bull run. Due to this, there has been a huge increase in the number of financial institutions joining the crypto market.”
Mike Novogratz, the billionaire investor, explained that
“Similar to the retail investors encounter in 2018, the present institutional investors fear of being missed out from the crypto market. Investors from every sector come across such situations, and the same trend manifests itself with banks in the near-term.”