Institutional interests in digital assets have surged significantly, andย thereโs no denying it. A CoinShares report revealed that digital asset investment products generated $95 million worth of inflows for institutional crypto investment products.
This was in the last week of September. Octoberโs initial weeks were no different, as it witnessed immense traction as well. It is no wonder that different banks are joining the crypto space.
In a recent development, Swiss-based financial institution SEBA Bank tapped into the demand from institutions, for income from digital assets.
๐ ๐ฆ๐๐๐ ๐๐ฎ๐ป๐ธ ๐๐ฎ๐๐ป๐ฐ๐ต๐ฒ๐ ๐ฆ๐๐๐ ๐๐ฎ๐ฟ๐ป ๐๐ผ ๐๐ป๐ฎ๐ฏ๐น๐ฒ ๐๐ป๐๐๐ถ๐๐๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐ฐ๐ฐ๐ฒ๐๐ ๐๐ผ ๐๐ฟ๐๐ฝ๐๐ผ ๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด ๐๐ฐ๐ผ๐ป๐ผ๐บ๐ ๐
Read the full media release ๐ https://t.co/loNhJENK2u and learn more about SEBA Bank, your trusted partner๐ก๏ธ pic.twitter.com/aLsyMzGi1Mโ AMINA Bank (@AMINABankGlobal) October 13, 2021
As per the official blog, SEBA Bankโs customers will soon be able to earn yields on their crypto holdings. The post stated,
โSEBA Bank, a fully integrated, FINMA licenced digital assets banking platform, today announced the launch of SEBA Earn, an institutional-grade solution enabling clients to earn yield on their crypto holdings.โ
Investors could use its Bitcoin and Ether lending services to generate yields as part of the SEBA Earn program. It will enable individuals as well as institutions to generate rewards from their crypto investment on networks including Tezos, Polkadot, and Cardano. Meanwhile, there are โmore protocols coming in the coming months,โ the blog noted, adding,
โAs institutional interest in digital assets accelerates, investors have a broader appetite for crypto assets, with a particular interest in earning services like staking, DeFi, and centralized crypto borrowing and lending,โ said SEBA Bank CEO Guido Buehler.
Thereโs more to it. Swiss financial regulator FINMA-licensed SEBA stated that it will be the first fully regulated bank to offer investors access to yields in decentralized finance (DeFi) protocols
As covered in a previous article, on yield farming, โYield Farming allows people to earn fixed or variable interest for lending. It has been one of the catalysts to help crypto enthusiasts to earn passive income.โ
Furthermore, hereโs an interesting twist. Yield Farming could lead to the death of saving accounts. Many have turned to crypto yields to get better returns on their savings. Additionally, traditional banks have lowered their interest rates to rates that do not keep up with inflation in the past few years.
Having said that, this surge in crypto lending platforms also saw more attention from regulators. Itโll be interesting to see how these platforms play out in the near future and how regulatory policies affect the same.