Crypto investment products abound, as institutional adoption continues to rise

Crypto investment products abound, as institutional adoption continues to rise

Institutional interests in digital assets have surged significantly, and there’s no denying it. A CoinShares report revealed that digital asset investment products generated $95 million worth of inflows for institutional crypto investment products.

This was in the last week of September. October’s initial weeks were no different, as it witnessed immense traction as well. It is no wonder that different banks are joining the crypto space.

In a recent development, Swiss-based financial institution SEBA Bank tapped into the demand from institutions, for income from digital assets.

🔉 𝗦𝗘𝗕𝗔 𝗕𝗮𝗻𝗸 𝗟𝗮𝘂𝗻𝗰𝗵𝗲𝘀 𝗦𝗘𝗕𝗔 𝗘𝗮𝗿𝗻 𝘁𝗼 𝗘𝗻𝗮𝗯𝗹𝗲 𝗜𝗻𝘀𝘁𝗶𝘁𝘂𝘁𝗶𝗼𝗻𝗮𝗹 𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗖𝗿𝘆𝗽𝘁𝗼 𝗘𝗮𝗿𝗻𝗶𝗻𝗴 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 🚀 Read the full media release 📄 and learn more about SEBA Bank, your trusted partner🛡️— SEBA Bank AG (@WeAreSEBA) October 13, 2021

As per the official blog, SEBA Bank’s customers will soon be able to earn yields on their crypto holdings. The post stated,

“SEBA Bank, a fully integrated, FINMA licenced digital assets banking platform, today announced the launch of SEBA Earn, an institutional-grade solution enabling clients to earn yield on their crypto holdings.”

Investors could use its Bitcoin and Ether lending services to generate yields as part of the SEBA Earn program. It will enable individuals as well as institutions to generate rewards from their crypto investment on networks including Tezos, Polkadot, and Cardano. Meanwhile, there are “more protocols coming in the coming months,” the blog noted, adding,

“As institutional interest in digital assets accelerates, investors have a broader appetite for crypto assets, with a particular interest in earning services like staking, DeFi, and centralized crypto borrowing and lending,” said SEBA Bank CEO Guido Buehler.

There’s more to it. Swiss financial regulator FINMA-licensed SEBA stated that it will be the first fully regulated bank to offer investors access to yields in decentralized finance (DeFi) protocols

As covered in a previous article, on yield farming, “Yield Farming allows people to earn fixed or variable interest for lending. It has been one of the catalysts to help crypto enthusiasts to earn passive income.”

Furthermore, here’s an interesting twist. Yield Farming could lead to the death of saving accounts. Many have turned to crypto yields to get better returns on their savings. Additionally, traditional banks have lowered their interest rates to rates that do not keep up with inflation in the past few years.

Having said that, this surge in crypto lending platforms also saw more attention from regulators. It’ll be interesting to see how these platforms play out in the near future and how regulatory policies affect the same.