Seba Bank's retail and institutional clients can now store tokens from Ethereum-based NFT collections such as Bored Ape and CryptoPunks in the bank's new custody service.

The decline of the non-convertible token market does not appear to be a problem for Seba, a crypto-focused Swiss bank that now allows customers to store NFTs.

According to an October 26th announcement, Seba Bank has launched a regulated custody platform that allows its customers to store NFTs. Seba Bank's retail and institutional clients can store Ethereum-based NFTs, including tokens from world-renowned NFT collections, using the NFT custody solution. The company is known as Bored Ape Yacht Club and CryptoPunks.

"At this time, there is no market integration with Seba Bank," a company spokesperson told Cointelegraph. In addition, at the client's request, the company will conduct due diligence before deciding whether to grant custody of a specific NFT. "The custodian service provided is not limited to the best collections," they claim.

Seba's new NFT storage platform is intended to provide customers with secure NFT storage without the need to manage private keys. This feature is integrated with clients' bank accounts, allowing them to include their NFTs in their overall wealth picture and manage them in the same way they would any other digital asset.

A firm representative expressed optimism about the future of NFTs, noting that Seba Bank was "the first regulated bank to offer NFT custody service," and added:

"We believe that digital assets, including NFTs, will be adopted and increasingly accepted even by traditional financial operators in the coming years."

Urs Bernegger, Seba Bank's co-head of markets and investment solutions, stressed that the bank is regulated by the Swiss Financial Market Supervisory Authority (FINMA) and has "core competence" in cryptocurrencies.

Seba Bank, headquartered in Zug, is a large cryptocurrency-focused financial institution known for its close collaboration with local regulators. FINMA granted Seba Crypto AG a Swiss banking and securities broker license in 2019. Seba Bank AG was certified as an information systems auditor by the regulator in 2021, allowing the company to provide enterprise-grade custody services.

The introduction of Seba Bank's NFT custody service came at a difficult time for the NFT market. Weekly NFT trading volumes dropped by up to 98% between the start of the year and the end of September 2022, with September down 30% from August. The average price of NFTs has also dropped significantly.

On the other hand, the number of NFT wallets has nearly doubled this year, from 3.4 million in January to 6.1 million in September.

Despite the decline in the market for intangible tokens, many platforms and businesses are launching NFT-related solutions. MetaMask Institutional, the supported institutional version of the MetaMask crypto wallet, announced last month that NFT has been added to its custody service offerings.

According to a Seba spokesman, "many investors with NFTs have remained in the market, demonstrating faith despite the market downturn." According to the firm, as institutional investors launch NFT funds and finance new projects, the NFT space has continued to mature. "Seba Bank is responding to the need for a regulated custodian capable of ensuring the security and integrity of NFTs for professional and institutional investors," they added.