Summer Capital, a Hong Kong-based investment firm is planning to invest in a project aimed at creating a Cryptocurrency bank. The firm wants to get a stake at SEBA Crypto AG, a company that wants to be licensed as a virtual currency bank. The new partnership will help the startup to enter the Asian Crypto market. SEBA will be hoping to get the necessary regulatory approval next year.
Summer Capital Supports The Creation Of Cryptocurrency Bank
As China continues to ban the use of Cryptocurrencies and related products and services, Hong Kong has taken a different turn that has enabled the island to emerge as a Crypto hub. The South China Morning Post has reported that Summer Capital is planning to buy a stake in SEBA Crypto AG. Summer Capital is a Hong Kong-based investment firms and its planning to take up the startup that wants to be licensed as a Cryptocurrency investment bank.
SEBA Crypto AG is based in Zug, a prominent Crypto hub in Switzerland. The platform has not yet received an approval to operate as a banking and securities service provider from the Swiss Financial Market Supervisory Authority (FINMA). Summer Capital is optimistic that their acquisition of the startup will help them in making a Cryptocurrency bank a reality.
SEBA To Enter The Asian Crypto Market
If Summer Capital succeeds in getting a stake at SEBA Crypto AG, the startup will be able to operate in Asia. The region has experienced tremendous growth in Cryptocurrency trading recently. Once the Cryptocurrency bank is opened, blockchain and Crypto based businesses will get a chance to enjoy traditional banking services. This is one of the greatest challenges that most Crypto firms face making it challenging for them to compete with businesses with access to banking services.
It is believed that Summer Capital will extend its support for SEBA to its ICO, which is planned to take place in the third quarter of 2019. Summer Capital has ventured in Fintech and Logistics sectors. The company is believed to be managing over $1 billion. This is the first time that the company is trying to venture into the Cryptocurrencies.
How Cryptocurrency Bank Will Work
SEBA will play a major role in enabling Crypto firms to access traditional banking services. According to the firm’s CEO Guido Buhler, they will mainly concentrate on transaction banking. The company is aware that most Crypto startups have been unable to grow due to lack of banking system in the sector. Buhler said that they will build an infrastructure that enables businesses to pay salaries in the virtual currencies.
Buhler added that he is optimistic that the company will receive the necessary regulatory approval early next year. This will enable the firm to provide liquidity services to Cryptocurrency exchanges and virtual currency custody services to institutions. Once this bank is launched, it will become easy for companies to pay their employees in Cryptocurrencies as they will now have a platform to facilitate these transactions. The company has revealed that it is planning to double its staff numbers at the beginning of next year.