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 in terms of providing licensing for crypto products and services, Hong Kong is a leading jurisdiction. 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 their firm is working under a "regulatory-first approach" which means that it's focused on compliance. Lee noted that SEBA Bank is operating on the same principles, which makes them excited about the partnership.
HashKey Group has recently received licenses from the Securities and Futures Commission (SFC) in Hong Kong to operate within the country. On the other hand, the SEBA Bank was the first to be granted a digital asset custody license in Switzerland that allows it to facilitate institutional custody services back in 2021.
Related: Institutional crypto custody: How banks are housing digital assets
With the recent waves brought about by the FTX debacle, regulatory scrutiny will increase within the crypto space according to institutional investors. Key institutional players within the space have recently told Cointelegraph that this is something that institutions have been waiting for. According to some of the investors, hedge funds have been preparing digital asset teams but are held back by the lack of regulatory clarity.
On Sept. 20, American stock exchange firm Nasdaq started its preparations to offer custody solutions to institutions. According to a report, the company created a group dedicated to offering institutional Bitcoin (BTC) and Ether (ETH) custody services.