A Hong Kong firm recently joined Swiss cryptocurrency investment bank, SEBA crypto AG, in its series A fundraising.
Hong Kong Firm Keen on Cryptocurrency Investment Banking
Summer Capital, a Hong Kong firm, decided to invest in SEBA Crypto AG’s Series A funding. According to South China Morning Post, this is a first by the Hong Kong firm in virtual currency or blockchain sector. The company also plans to in SEBA’s ICO in 2019.
Jack Chung, the spokesman for Summer Capital, said that the company expects SEBA’s approval by the Swiss Financial Market Supervisory Authority (FINMA). Chung added that an endorsement for SEBA would be beneficial. This will enable the Swiss company to expand to other blockchain companies in Asia who can’t access the mainstream banking infrastructure.
Furthermore, Chung said that Summer Capital is ready to support the Swiss cryptocurrency investment bank’s plans to penetrate Asia, a continent that allows blockchain and virtual currency thrive. Apart from Summer Capital, another investor is Black River Asset Management, a U.S. investment company.
Guido Buhler, chief executive of SEBA crypto AG, said that the company would receive approval from the Swiss regulatory body in Q2 2019. Buhler further noted that the firm’s primary focus would be transaction banking.
Also, Buhler said:
It has been tough for blockchain start-ups to grow their businesses as they are unable to access the traditional banking system. We are building infrastructure to allow companies to pay salaries in cryptocurrencies, and bridging the disconnect between fiat and cryptocurrency payment.
Furthermore, the company aims to create its technology framework and multiply its headcount from 20 to 55, by Q1 2019.
Apart from providing traditional banking services, SEBA will add crypto-asset custodial services for institutional clients. The chief executive also said that the firm would equally make liquidity services available to different digital currency exchanges, including Asia.
SEBA Crypto AG
Switzerland-based cryptocurrency firms and Swiss banks have been on best terms. Swiss banks see virtual currency as unregulated and have therefore refused to offer any service to crypto firms. Virtual currency firms, on the other hand, are frustrated with the lack of banking support. In July, most Swiss-based cryptocurrency firms moved out of Switzerland to regions where banks are welcoming. However, there is a crypto startup willing to bridge the divide.
Late last month, SEBA Crypto AG, a Switzerland-based cryptocurrency startup, raised $100 million to fund its proposed regulated digital currency bank. The divide between traditional financial institutions and the digital currency market, drove the company to create a cryptocurrency bank. According to the company, the bank will cater to the needs of virtual currency and also transactional banking, bridging the gap.
Cover image courtesy of Ethereum World News archives.