Crypto Bank Seba and Swiss Mortgage Provider Hypothekarbank Partner to Apply Decentralized Technology
Switzerland-based crypto bank Seba Crypto AG has reportedly partnered with a Swiss mortgage provider to use its core banking system called Finstar. The report comes from the German version of Cointelegraph, which reported the news last week.
The partnership with Swiss mortgage provider Hypothekarbank Lenzburg AG will allow Seba to implement its decentralized software into Finstar. It will also allow Seba to use Finstar’s conventional banking services.
Finstar is the core banking service used by Hypothekarbank. Finstar processes transactions in a centralized environment, including transactions involving mortgages. Now, thanks to the partnership with Seba, Hypothekarbank’s Finstar may embrace the advantages of decentralized blockchain technology.
It’s unclear if a decentralized version of Finstar would be used to process mortgages, or if this would be a separate blockchain technology to be used by Seba. Essentially, blockchain company Seba is using a conventional financial trading platform made by a major Swiss financial company – which is why this is big news for crypto.
Thanks to the partnership, Seba will be permitted to use Finstar to process and store transactions, including transactions involving cryptocurrencies and other blockchain-based digital assets.
All of these systems are in active development. Development is scheduled to be completed in Q2 2019. Seba Crypto AG confirmed the report in a press release on January 31.
“Today’s announcement is a sign of the new reality in the financial world where, as a regulated institution, we want to build a bridge between traditional banking and the digital ecosystem,” explained Seba Crypto AG CEO Guido Bühler in the press release.
Through the partnership, Hypothekarbank will reportedly oversee application management and datacenter operations. Seba, meanwhile, will handle blockchain and crypto-specific developments on its own.
The ultimate goal is to build a bridge between the worlds of traditional finance and digital finance.
Seba made headlines in September 2018 after raising $103 million in financing. Seba is using the money to create a bank offering cryptocurrency services. Progress appeared to be going smoothly: in November, the company stated that it was expecting to be granted a banking and securities license from Switzerland’s Financial Market Supervisory Authority, with that license expected in early 2019.
The January 31 press release makes no mention of that license, however. When Seba is granted the license, it will allow the company to legally conduct crypto trading and investments with other banks and investors.