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SEBA Bank exec says clear crypto regulations could accelerate institutional adoption

SEBA Bank Senior Executive Officer Christian Borel predicts the rise of digital asset banks in the future as crypto adoption and demand for crypto-related services increase.

Photo by Photospirit of Pixabay

Tue, 08 Mar 2022, 12:46 pm UTC

Some investors are concerned that government regulation might ruin the booming digital asset industry. However, a SEBA Bank executive argued that clear regulations could help push crypto adoption.

SEBA Bank Senior Executive Officer Christian Borel believes that clear crypto regulations could encourage institutional adoption. Institutions as well as their shareholders would have a secure and trusted way of accessing crypto markets thanks to the presence of regulated counterparties within the banking industry.

“I expect to see a considerable acceleration in engagement and adoption of digital assets by institutions prompted by a clearer regulatory environment as these institutional players will require a regulated counterparty in which to operate securely,” Christian Borel told Cointelegraph in an interview.

Borel noted that institutions’ increasing interest in crypto is not surprising as they are always on the lookout for new prospects. “Institutional investors have always been very attentive to new investment opportunities and their interest in the digital assets sector is coherent with this approach,” the SEBA Bank executive added.

He also predicted the rise of digital asset banks in the future as crypto adoption and demand for crypto-related services increase. Just like traditional banks, digital asset banks would offer a full suite of traditional banking services but will also offer crypto-structure products targeting demand from the digital economy.

“I believe that digital asset banks will be increasingly ubiquitous as the digital economy grows, adapting to the evolving needs of clients and prospects in the fast-paced digital asset economy,” Borel said. He added that crypto is now an appealing alternative when other options can only offer “low-interest rates and low return on investment.”

Last year, SEBA Bank became the first financial institution to receive a Swiss crypto custody license issued by FINMA. The CISA license allowed the bank to provide institutional-grade custodian services for collective investment schemes with liquid crypto or digital assets as the underlying investment class targeting professional investors.

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