As of mid-January 2020, Swiss digital bank SEBA is looking to raise 100 million Swiss francs, equivalent to approximately $103 million USD. The bank previously raised 100 million Swiss francs but will soon initiate a second round of funding to further develop “a universal bank for the new economy”.
Switzerland-based SEBA’s Fundraising Explained
SEBA is a developing bank designed to provide digital asset services to both institutional investors and companies, while also facilitating traditional banking services. Back in September of 2018, SEBA raised 100 million Swiss francs.
The bank used the funds to build a foundation of services. Last year for example, SEBA was granted a license to operate as a financial services provider with a focus on digital assets from the Swiss Financial Market Authority (FINMA).
The bank now operates in a number of jurisdictions beyond Switzerland, including Austria, the United Kingdom, Hong Kong, Singapore, France, Italy, Germany, and Portugal. Through its license from FINMA, SEBA can facilitate a number of services related to digital assets.
The bank allows for clients — both institutions and professionals — to invest in, store, and trade digital assets. SEBA also provides services allowing customers to issue their own tokens.
Now, SEBA is looking to raise another 100 Swiss francs in its second round of fundraising. The bank aims to raise funds from financial institutions, family offices, and individuals.
The bank’s CEO, Guido Buehler, previously served as a managing director at UBS for eleven years. Regarding the upcoming fundraising, Buehler said,
“If you want to grow, and we have ambitious plans, we need to have additional capital. I always say we are a universal bank for the new economy.”
Buehler is known to advocate for a future of digital banking. He has previously said that in five or ten years, the majority of financial services and transactions will be recorded on a blockchain. The technology enables cost-efficient production and maintenance for financial services, the likes of which — he suggests — have yet to be realized in the financial industry.
Switzerland’s Growing Reputation for Digital Assets
Switzerland has established a reputation as a regulatory friendly jurisdiction when it comes to digital assets. The Swiss town of Zug, situated just outside of Zurich, is commonly referred to as ‘Crypto Valley’.
The town is home to a growing number of blockchain companies and organizations. The local government has made it a priority to legally allow for the use of digital assets, thereby attracting companies from all over the globe.
Tax authorities in Switzerland have ruled against profit tax and value added tax (VAT) for Security Token Offerings (STOs). Switzerland’s primary stock exchange, SIX, has announced plans to tokenize some existing securities by 2021.
Just last week, a purchasing agreement was established involving a famous building in Zurich. The building is set to be sold for $134 million, with 20% of the transaction paid with security tokens.
SEBA wants to contribute to the situation in Switzerland, by bridging the gap between traditional finance and emerging technology.
What do you think about SEBA seeking $103 million for an upcoming expansion? We want to know what you think in the comments section below.
Image courtesy of Yahoo.