A private bank from Switzerland Julius Baer has reportedly entered into a partnership with a cryptocurrency banking company in order to offer its customers crypto-related services in 2019.
According to the company press release, the bank has signed an agreement with SEBA Crypto AG, which enabled it to provide a number of new cryptocurrency services to the industry participants seeing stronger customer demand. The new services will include custodian, investment and transaction solutions.
Under the deal, SEBA has to obtain a license of banking and securities dealer from the Swiss financial regulator Financial Market Supervisory Authority (FINMA). The company submitted the application to the authority last June. Meanwhile, SEBA is going to start banking operations with cryptos in Q2 2019, according to its website roadmap. The platform is also planning to float an ICO in Q3.
Peter Gerlach, Head Markets at Julius Baer and proposed member to the Board of Directors of SEBA, said in the press release:
"At Julius Baer, we are convinced that digital assets will become a legitimate sustainable asset class of an investor’s portfolio. The investment into SEBA as well as our strong partnership are proof of Julius Baer’s engagement in the area of digital assets and our dedication to make pioneering innovation available to the benefit of our clients.”
Notably, Julius Baer purchased a stake in SEBA in 2018. The cost of the contract is unknown.
SEBA was established by bankers that used to work at UBS. The startup succeeded to attract some CHF 100 million ($104 million) in VC funding in September 2018 to establish a regulated crypto bank. The general idea was to provide services that banks traditionally provide to companies engaged in operations with cryptos (crypto trading, digital asset management, and custodial solutions) for institutions interested in the segment.