Swiss startup raised $100 mln to build Crypto Bank

A Switzerland-based cryptocurrency startup, SEBA Crypto AG has successfully secured $100 million as investment from some local and foreign retail and institutional investors. This investment will be used to fund its proposed fully regulated cryptocurrency bank.

SEBA will manage cryptocurrency trading and investments for banks and investors. It will also provide corporate financing services among which are technical guidance on initial coin offerings, cryptocurrency services to conventional clients and groups, and banking services to traditional corporate clients.

The Zug-based startup is headed by former UBS managers Guido Buehler, who serves as CEO, and Andreas Amschwand, who serves as chairman.

Buehler said they have been in talks with the Swiss regulators since April and are scheduled to submit their final application by the end of coming October according to the FT.

Efforts at translating its financial base into an entity are now dependent on being granted a banking license from the Swiss Financial Market Supervisory Authority (FINMA).

Seba also has plans to incorporate consultation services for Initial Coin Offering (ICO) projects, a similar to how traditional banking services offer corporate financing consultation to firms conducting Initial Public Offering rounds. The bank will also act as a security dealer to manage cryptocurrency trading and investments accredited investors.

Seba could also go for a series B funding round while pursuing more workforce and seeking operational expansion in Europe and Singapore, Buehler said. The chief, however, didn’t specify by when they will start working on these plans, indicating the bank would prefer to settle its foot in Switzerland before ballooning to other territories of Europe, and Singapore as a whole.

From the creation of a digital ID for citizens built on the Ethereum blockchain to the acceptance of bitcoin payments for municipal services, the Swiss town of Zug has become known as the “crypto valley” of the world.

More than 500 blockchain startups call the town of Zug home, but as the industry has grown, it has faced restrictive banking services, forcing companies to look abroad for banking services, until mortgage bank Hypothekarbank Lenzburg opened its arms to the industry three months ago.

“In Switzerland, we have the commitment from various authorities to establish a comprehensive regulatory environment for the development of blockchain technology and the sustainable, stable, growth of crypto assets,” Amschwand explained in a statement.

“This makes Switzerland the ideal place to launch a new financial services paradigm.”

The eclectic group of investors who have a stake in the business includes Swiss-based BlackRiver Asset Management and Hong Kong-based Summer Capital among other financial backers from Switzerland, Malaysia, Hong Kong, China and Singapore.