The bank, which says it straddles conventional and digital assets banking markets, has already created a presence in a number of jurisdictions, including its home base of Switzerland's "crypto valley."

SEBA Bank, the crypto bank recently interviewed by this news service, said yesterday that its regional Hong Kong subsidiary has secured an approval-in-principle from regulators, SEBA said in a statement. 

The regulatory move covers SEBA’s licence application to operate regulated activities in Hong Kong to deal in securities, including virtual assets-related products, such as over-the-counter derivatives and structured products; advice on securities and virtual assets; and conduct asset management for discretionary accounts in both traditional securities and virtual assets.

SEBA, based in Switzerland's "crypto valley" in Zug, straddles crypto assets and traditional banking. It has told this news service that it intends to position itself in what has been a turbulent time for digital assets. SEBA has a licensed business in Abu Dhabi, the UAE, and an office in Mumbai, India.  The Hong Kong licence, when issued, will “pave the way for SEBA Hong Kong to be part of the first group of licensed corporations in Hong Kong to conduct investment services with crypto capabilities in the market, making the Switzerland-headquartered bank a significant frontrunner in Hong Kong’s burgeoning crypto economy,” it said in a statement.

“This AIP signifies that all our efforts are heading in the right direction – SEBA group wants to service crypto investors in jurisdictions that recognise the value of digital assets,” Amy Yu, Asia-Pacific chief executive, Hong Kong, said. 

“We see enormous potential in Hong Kong's journey to becoming a global crypto market leader and look forward to contributing to that trajectory,” she added. 

“Complementing SEBA group’s established licences in Switzerland (FINMA) and Abu Dhabi (FSRA), the Hong Kong AIP significantly extends our global regulatory footprint,” Franz Bergmueller, group CEO, SEBA Bank, said.

The intersection of wealth management, private banking and digital assets continues to evolve. A 2021 Goldman Sachs survey found that nearly half the family offices it conducts business with want to add digital currencies to their stable of investments, with the closely held firms seeing crypto as a possible hedge for higher inflation and prolonged low interest rates. Almost half of respondents to that Goldman Sachs report said that they are thinking of moving into digital assets such as bitcoin, although most are not currently in this space. Their main reason for caution is that they are sceptical about whether cryptocurrencies are a store of value.

(Goldman Sachs polled more than 150 family offices.) Major institutions, including JP Morgan, Morgan Stanley, Julius Baer, Guggenheim Partners, and others, are involved. SC Ventures, Standard Chartered’s innovation and ventures unit, partnered with Northern Trust to launch Zodia, a cryptocurrency custodian for institutional investors.