After securing regulatory approval in Hong Kong, Zug-based SEBA will focus on serving crypto natives and other digital asset companies that struggle with even basic financial market access, according to APAC CEO Amy Yu.
Last month, Zug-based crypto lender SEBA received an approval in-principle from the Securities and Futures Commission to conduct virtual asset-related activities in Hong Kong. Moving forward, it sees firms operating in the virtual asset industry as its top source of new business.
«The segment in which we see the most demand is from crypto natives and crypto companies. They have had a hard time accessing financial markets, even for basic money market instruments like Treasury bills,» said SEBA APAC chief executive Amy Yu in a conversation with finews.asia. «Another common need is hedging for their existing crypto holdings, particularly via a regulated entity.»
Wealthy Management Clients
In addition to crypto-related firms, Yu has observed interest from high net worth and ultra-high net worth individuals in the region.
«We also see demand in Asia from wealthy private individuals and family offices, especially for discretionary mandates,» Yu said, adding that the mandates will be invested in both traditional and virtual assets. «We intend to work with some private banks in the segment that choose to collaborate with us.»
Traditional Institutions
Admittedly, market sentiments remain soft with a strengthening dollar and the aftereffects of headline failures, such as the collapse of Terra and FTX. This has derailed the trajectory of adoption from certain segments like brick-and-mortar financial firms.
«Originally, we thought that traditional institutions would be a big immediate target for us but given the recent environment, I expect this to take some time,» Yu explained.
Not Just Buy-And-Hold
Nonetheless, Yu believes that market direction has a limited effect on SEBA’s business due to its diverse product shelf.
«Markets everywhere are a bit depressed. The beauty of our future offering is that we are not just about buying and holding digital assets, so we are not as affected by sentiment or trading volumes,» she said, noting that SEBA has no plans to be an exchange and therefore does not provide crypto spot trading.
Future Plans
Moving forward, SEBA will focus on its cementing its market position as one of the first licensed providers of crypto-linked OTC derivatives and structured products. At a later point, it could also explore adding advisory services to its offering in the region.
«From our headquarters in Switzerland, we have a huge product offering and we are planning to bring some of those products to Asia to our Hong Kong licensed entity,» Yu said. «We will also continue exploring opportunities in other jurisdictions in Asia, particularly in Singapore.»
