While China continues to eye cryptocurrencies with a healthy dose of suspicion, acceptance, and popularity in the rest of Asia is on the increase. In fact, a Hong Kong-based firm is hope’s its investment will help pave the way for a cryptocurrency bank.
According to the South China Morning Post, the firm in question, Summer Capital, has bought a stake in SEBA Crypto AG, a startup with a goal to become a licensed and authorized cryptocurrency investment bank. The platform, which is based in the crypto hub of Zug in Switzerland is however still awaiting approval from the Swiss Financial Market Supervisory Authority (FINMA) to trade as a banking and securities dealer.
Institutional Investment and Support
This approval will allow the startup to extend to Asia and assist blockchain-based platforms to gain access to traditional banking systems. The spokesperson for Summer Capital, Jack Chung, explained their support of the startup:
We believe we could support SEBA’s plan to expand into Asia, a region where cryptocurrency trading and blockchain projects have been flourishing.
This support could extend to SEBA’s ICO, which is scheduled for some time in the third quarter of next year, where the investment firm could make a contribution. While Summer Capital manages over $1 billion and has interests in FinTech and logistics, this is the company’s first foray into blockchain.
Both Summer Capital’s investment amount, as well as the contribution of U.S.-based Black River Asset Management, have not been disclosed.
More About SEBA
Guido Buhler, who is SEBA’s CEO, has said that the bank’s first focus will be on transaction banking. He explained:
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.
Live Bitcoin News previously reported that a few surveys show that there is indeed an interest in people having parts or even all of their salaries paid in virtual currency.
Buhler also added that SEBA should receive the required regulatory approval in the first half of next year. They will also eventually offer digital asset custody services to their institutional clients. In addition, the crypto bank will offer liquidity services to exchanges.
This growth in services will extend to staff numbers as the platform plans to double its number of employees by the beginning of next year.
Do you think that SEBA will get the required approval and be successful in their venture? Let us know in the comments below!
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