A fully operational crypto-focused bank based in Switzerland is expanding into nine other markets. Holding a banking and securities dealer license from the Swiss Financial Market Supervisory Authority, its services include crypto custody, trading and asset management. The bank launched its investment business, including a cryptocurrency index.
Also read: Swiss Crypto Bank SEBA launches with range of services
SEBA Bank AG, formerly SEBA Crypto AG, is a crypto-focused bank headquartered in Zug, Switzerland. The bank recently became fully operational and began onboarding Swiss clients after obtaining a banking and securities trading license from the Swiss Financial Market Supervisory Authority (FINMA).
The bank said it would expand its services to “customers in selected foreign jurisdictions” in December. A spokesperson for the bank told news.Bitcoin.com that the selected jurisdictions are the UK, Italy, Germany, France, Austria, Portugal, the Netherlands, Singapore and Hong Kong.
SEBA Bank aims to build a bridge between the traditional banking world and the crypto world. Its services include liquidity storage, trading and management, asset and wealth management, banking and tokenization. They are aimed at professional investors, family offices, banks, asset managers and blockchain companies.
The spokesperson further clarified to news.Bitcoin.com that the bank accepts BTC, ETH, ETC, LTC, XLM, and NEO for its custody service. As for trading, it accepts BTC, ETH, ETC, LTC, and XLM.
Investment solutions and crypto index
The bank kicked off its investment business on Tuesday with its crypto asset index called SEBA Crypto Asset Select Index (SEBAX). The bank has chosen MV Index Solutions Gmbh (MVIS) to maintain the index and act as administrator. Gentwo Digital was also asked to implement the specific restructuring requirements of the first investment solution, SEBA noted.
SEBAX “is a dynamic, risk-optimized index with broad exposure to the crypto asset market,” the bank described. Its goal “is to provide an investable index for the safest, most reliable and most tradable crypto assets,” MVIS detailed. “The selection of constituents is constantly monitored. The index applies advanced techniques to reduce the concentration of single constituents and provide increased diversification.
According to its fact sheet, the index was established on July 2 and currently has five components that are rebalanced monthly. It is calculated daily with component prices converted to USD. A maximum of eight crypto assets ranked by market capitalization are selected for inclusion in the index. MVIS has contracted with Cryptocompare Data Ltd. to maintain and calculate the index. In November, the constituents of the index are 48.46% BTC, 26.70% ETH, 18.28% LTC, 3.43% XLM and 3.13% ETC.
Crypto assets must meet specific criteria to be eligible for the index and must rank in the top 30 coins by market capitalization. “Stable coins and private coins are excluded,” explained MVIS. Also excluded are crypto assets with less than 90 days of price history, those that are not listed on any of the eligible exchanges, and those that do not meet the technical maturity and security criteria of the index.
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Images courtesy of Shutterstock, SEBA Bank and MVIS.
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