Despite the bear market, several firms are pushing for widespread crypto adoption, especially among institutions. According to reports, cryptocurrency-focused SEBA Bank is partnering with financial services firm HashKey Group. The partnership aims to push institutional crypto adoption in Switzerland and Hong Kong.
The two businesses will work to develop a range of solutions for institutional investors looking to enter the cryptocurrency market. Both firms declared their commitment to compliance and acceptance of different legal and regulatory frameworks in their respective countries.
According to SEBA Bank CEO Franz Bergmueller, Hong Kong is a top jurisdiction for granting licenses for crypto products and services. As a result, SEBA Bank is keen to adopt HashKey to expand its presence in the nation and join the local digital asset ecosystem.
HashKey chief Michel Lee emphasized that the company takes a “regulatory-first approach,” which means that compliance is its primary concern. Lee stated that they are enthusiastic about the relationship because SEBA Bank operated under similar ideals.
The Securities and Futures Commission (SFC) in Hong Kong recently granted licenses to HashKey Group to conduct business there. In 2021, the SEBA Bank became the first company in Switzerland to be given a license for the custody of digital assets, enabling it to provide institutional custody services.
Are institutions still keen on crypto despite bear markets?
The crypto industry has taken mainstream attention in the past couple of years. Moreover, Bitcoin (BTC) is still one of the best-performing assets in the last decade, despite its recent plummet. Even BlackRock CEO, Larry Fink, stated that crypto continues to be relevant for the future despite the recent FTX collapse. Therefore it is not surprising that institutes are still interested in digital assets. Furthermore, the bear market is a great time for firms to build up their strategies and plans, which can pay off when the bull run returns.
At press time, the global crypto market cap stood at $906 billion, up by 1.9% in the last 24 hours.