SEBA Bank, a Swiss-based crypto-bank, wants to use the Arc d’Aave platform to attract institutional investors. Thanks to this new platform, the bank wants to allow its customers to benefit from the returns of decentralized finance (DeFi) while meeting the requirements of regulators.
SEBA Bank wants to offer the Arc platform to its customers
The Swiss crypto-bank SEBA has just announced its intention to operate Arc , the institutional platform developed by the team behind Aave , the decentralized finance lending protocol (DeFi).
On Aave’s website , a representative of the bank claims that a request has been sent to the decentralized governance of the platform.
“Due to various regulatory restrictions in their jurisdictions, SEBA’s institutional clients have not been able to deposit significant cash on Aave so far. The launch of Aave Arc represents an excellent opportunity for them to access DeFi returns while respecting their regulatory obligations. At SEBA, we believe this will directly benefit the Aave community with institutional liquidity , ” explains SEBA Bank.
Deployed this fall, the Arc platform is only available to investors who have completed the Know Your Business (KYB) verification . This procedure allows the platform to verify the identity of investors in order to fight against money laundering.
Investors who have completed the form are then placed on a whitelist. They can therefore borrow and lend funds to other verified investors. At first, Arc is limited to 4 cryptocurrencies: Bitcoin (BTC) , Ether (ETH) , USDC and AAVE .
Approved by the Federal Financial Market Supervisory Authority (FINMA), SEBA Bank offers a cryptocurrency trading and custody service. Already widely known for its decentralized finance service, the Swiss bank aims to democratize the use of DeFi .
With this in mind, SEBA Bank added several tokens to its offer in August, AAVE and LINK . A few months earlier, the Zug-based crypto-bank added Uniswap (UNI), Yearn Finance (YFI) and Synthetix (SNX) .
Institutionals flock to decentralized finance (DeFi)
According to SEBA, the demand from institutional investors for DeFi solutions continues to increase. In this context, the bank considers that the Arc platform is a “thoughtful response to growing institutional demand” which must deal with a shower of regulatory obstacles.
“Faced with the growing demand from institutional investors for new opportunities in the DeFi space, SEBA has placed DeFi at the heart of its strategy by developing a suite of products and services related to decentralized finance” , continues the Swiss crypto-bank .
SEBA Bank’s assertions corroborate institutional appetites for decentralized finance. Under these conditions, the success of DeFi platforms dedicated exclusively to institutions is not surprising. These include SheeldMarket , a French-based institutional cryptocurrency brokerage, which raised $ 10 million in October .
