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Double-Digit Million Investment

The Swiss fintech sector is awash with start-ups including Crypto Finance and Cryptalgo in Zurich or Taurus in Geneva attempting a bridgehead between the emerging cryptocurrency technology and the traditional banking sector. The goal is to enable institutional investors entry into the new asset class. 

The bank is going the opposite route to other crypto start-ups, electing to invest a double-digit million franc sum into obtaining a Swiss bank license. Buehler said he plans to apply with Finma shortly, and hopes that Sepa will be licensed by next summer.

Missing Puzzle Piece

The hurdles are high, but the reasons for licensing are lucrative: «We want to be subject to the highest degree of regulation that Switzerland offers, so that we can offer our clients the highest level of security» Buehler said. A banking license would also enable Seba the flexibility to respond to market developments, he noted. 

Its management and backers view Seba as the missing puzzle piece between the emerging cryptocurrency world and that of the traditional financial system. Seba Crypto plans to offer custody and storage of digital assets, trading and liquidity management, corporate finance for crypto firms, and investment management of digital assets. The firm also plans to provide portfolio management and issue its own crypto products.

Traditional Bank Services

When approved to do so, Seba also hopes to provide traditional banking services to crypto firms, which have had trouble plugging into the financial system in Switzerland as corporate clients, as finews.com has reported.

Once Seba has obtained the Finma license, the bank might conduct an initial coin offering, or ICO, in order to boost its development. The token would be regulated as an asset coin, and function as a participation share, or type of preferred stock.