With the crypto winter slowing down developments within the space, two digital asset-focused firms will work together to speed up digital asset adoption for institutions.
In an announcement sent to Cointelegraph, crypto-focused company SEBA Bank said that it formed a partnership with the financial services firm HashKey Group to accelerate the institutional adoption of digital assets in Hong Kong and Switzerland.
The two firms will aim to create various solutions for institutional investors seeking to dive into the crypto ecosystem. Both companies said that they are dedicated to compliance and embracing various regulatory frameworks within their jurisdictions.
SEBA Bank CEO Franz Bergmueller said that Hong Kong is a leading jurisdiction in terms of providing licensing for crypto products and services. Because of this, SEBA Bank is eager to enter the local digital asset ecosystem and extend its presence within the country through HashKey.
Michel Lee, an executive at HashKey, highlighted that his firm is working under a “regulatory-first approach,” meaning it’s focused on compliance. Lee noted that SEBA Bank is operating on the same principles, which makes him excited about the partnership.
HashKey Group recently received licenses from the Securities and Futures Commission in Hong Kong to operate within the country. Meanwhile, SEBA Bank was the first to be granted a digital asset custody license in Switzerland, allowing it to facilitate institutional custody services, back in 2021.
Related: Institutional crypto custody: How banks are housing digital assets
With the recent waves spreading through the industry due to the FTX debacle, institutional investors believe that regulatory scrutiny will increase. Key institutional players recently told Cointelegraph that this is something institutions have been waiting for. According to some of them, hedge funds have been preparing digital asset teams but are held back by the lack of regulatory clarity.
On Sept. 20, United States stock exchange Nasdaq reportedly started preparing to offer custody solutions to institutions, creating a group dedicated to offering institutional Bitcoin (BTC) and Ether (ETH) custody services.