In this edition of The Digital Investor, we evaluate the performance of different DeFi portfolios. We test three different approaches – hold ETH as it is the major asset that gives exposure to DeFi, buy/sell governance tokens of different DeFi platforms, and ‘earning’ governance tokens through yield farming. Within buy/sell we test three different strategies: momentum-based, rule-based, and DeFi Degen.
SEBA Bank appoints Päivi Rekonen as Chair to its Board of Directors
25 September, 2020
Päivi Rekonen joins SEBA Bank as Chair to the Board of Directors with immediate effect taking over from Sébastien Mérillat, Chair ad interim.
The Board of Directors is further strengthened with the appointment of Hans Kuhn and Sanjeev Karkhanis.
Are blockchains that safe? How to attack them and how to prevent these attacks (Part 1)
24 September, 2020
In this edition of The Bridge, we explore some well-known attacks which are commonly used to compromise blockchain networks and discuss how consensus mechanisms such as Proof of Stake and Proof of Work may offer some (if limited) preventative measures to combat attacks.
In this digital investor, we examine the latest crypto market developments. We compare the 2017-2018 ICOs wave with the current DeFi wave and investigate the sustainability of the liquidity mining trend. Finally, we analyse Yearn Finance by calculating the relative valuation of Yearn Finance based on its price to earnings ratio.
SEBA Bank Announces Joint Venture Partnership with Lightnet Group
25 August, 2020
SEBA Bank signs Memorandum of Understanding (MoU) with the Singapore-based fintech company Lightnet Group to become the banking counterparty, enabling settlements, correspondences, and remittances.
The collaboration strengthens SEBA’s Asset Tokenization Division in the field of Digital Treasury Products & Services and underlines the expert status which SEBA Bank prides itself on internationally.
The offered remittance services bypass the traditional remittance industry and provides millions of unbanked migrant workers in Southeast Asia with a more favourable service.
Bitcoin halvings force miners to upgrade their equipment and 2020 was no different. The latest generation of mining equipment offers higher efficiency compared to the previous generations. In this Digital Investor, we take the reader through the evolution of bitcoin mining, how investors can gain exposure to the mining industry and the viability of bitcoin mining business.
SEBA Bank participates in further initiatives: CMTA’s successful test of infrastructures for tokenization & CVA education working group
13 August, 2020
The Capital Markets and Technology Association (CMTA) along with SEBA Bank and other leading financial institutions Sygnum Bank, Arab Bank, Vontobel and Swissquote have successfully completed a test run for decentralized capital market infrastructures for tokenization. The dry run was designed to test trading security tokens using Distributed Ledger Technology (DLT). The banks acquired tokenized shares issued by CMTA Labs SA and traded the securities over-the-counter (OTC) and through a digital asset trading platform.
SEBA Bank announces organisational changes to its Board of Directors
28 July, 2020
Andreas Amschwand, Chairman of the Board of Directors at SEBA Bank, has decided to leave the board and focus on other mandates.
Sébastien Mérillat, founder and Member of the Board at SEBA Bank, will be proposed as the interim Chairman in the upcoming Board meeting.
We acquaint readers with the Compound protocol and its governance token COMP in this edition of the Bridge. We present a framework to think about valuation of COMP and other DeFi governance tokens earned by liquidity mining.
Banque de France announces candidates for testing integration of Central Bank Digital Currency (CBDC)
21 July, 2020
Zug, 21 July 2020 – SEBA Bank, a FINMA licenced Swiss Bank providing a seamless, secure and easy-to-use bridge between digital and traditional assets, today announces that they have been selected by Banque de France for experiments with Central Bank Digital Currency (CBDC). Banque de France announced the overview of candidates for their experiment. SEBA Bank is proud to see that Banque de France selected SEBA Bank amongst well-established and well-known international banks for its pilot project on how CBDCs can be distributed and used for cross-border payments to improve the functioning of financial markets.
The inexorable march of Central Bank Digital Currencies
16 July, 2020
The steadily growing global interest in Central Bank Digital Currencies (CBDCs) suggests that the official launch of the first CBDC is approaching fast. The Financial Action Task Force (FATF) has reviewed the “travel rules” compliance, one year after their issuance. Switzerland politicians have unanimously backed the Blockchain Act.
SEBA Bank is the first digital bank offering asset securitization services on the public Corda Network using DASL
15 July, 2020
Zug, 15 July 2020 – SEBA Bank, a FINMA licenced Swiss Bank providing a seamless, secure and easy-to-use bridge between digital and traditional assets, today announces that they will be partnering with Digital Asset Shared Ledger (DASL) – the liquidity network for digital assets. This partnership allows SEBA Bank to offer institutional clients the ability to issue and invest in Digital Securities representing financial instruments on the public Corda Network.
In this edition of The Digital Investor, we propose two valuation models for cryptocurrencies. In the first model, we propose an innovative method to price cryptocurrencies in terms of fiat currency. In the second model, we propose a method to compare the price of two proof-of-work cryptocurrencies according to a no-arbitrage condition (mining parity).
SEBA Bank launches “Dual Currency Certificate on Bitcoin/USD”: Benefit from crypto volatility
24 June, 2020
Switzerland’s SEBA Bank launches an innovative investment product that takes advantage of bitcoin’s high volatility.The Dual Currency Certificate on BTC/USD offers easy entry into the cryptocurrency market and an attractive return.The potential loss associated with bitcoin is offset by a yield of 3.23% for a fixed three-week, 2 days term (annualized yield of 44.70%). The certificate is publicly distributed in Switzerland and is available in other countries as a private placement.
Phase 0: One Small Step for Ethereum, One Giant Leap for Decentralised Networks
04 June, 2020
Ethereum 2.0, one of the most ambitious and anticipated project in the blockchain industry, is just weeks away from its Phase 0 release. After years of delay, Ethereum is nearly ready to launch the Beacon Chain, which will become the cornerstone of the new Ethereum network. In this month, digital investors will learn how Ethereum 2.0 works and analyse the impact of the Beacon chain release on the price of ETH
SEBA launches SEBAversity – an educational platform for digital assets and crypto currencies
04 June, 2020
SEBAversity is a novel, non-profit educational platform in the field of blockchain technology, digital assets and crypto currencies
Through online and offline content, SEBAversity combines practice-oriented expert knowledge with academic research
SEBAversity has renowned academic partners: FinTech Innovation Lab of the University of Zurich, the Lucerne University of Applied Sciences and Arts and the Frankfurt School Blockchain Center
SEBAversity addresses both individuals and companies, which can have their employees trained in SAQ-compliant training on blockchain and crypto currencies
Ethereum’s journey towards Serenity, its proof of stake version, begins with implementation of beacon chain. This article makes readers understand the role of beacon chain in Ethereum’s ultimate version and how it will serve as an anchor during this migration.
SEBA Bank and Tokensoft to enter strategic partnership for asset tokenization
11 May, 2020
Two industry leaders, SEBA Bank and Tokensoft, enter into a strategic partnership for asset tokenization. Tokensoft’s innovative tokenization platform will become an integral component of SEBA’s asset tokenization offering for existing and emerging client demands.
Bitcoin halving: The battle of hard and soft money
07 May, 2020
Bitcoin halving is just around the corner. In this Digital Investor edition, the first section compares and contrasts halvings of Bitcoin and other assets. The second section invites readers to explore how mining dynamics are expected to change post-halving. We then estimate how prices may behave given a no-arbitrage condition.
Crypto AML: a complex but worthy compliance effort
16 April, 2020
The implementation of the global anti-money laundering Travel Rule standard for virtual assets is a daunting compliance task, but once achieved, will boost the credibility of the cryptofinance industry.
Historical evidence for bitcoin performing like digital gold
03 April, 2020
In the first days after the outbreak of the coronavirus crises in the West, crypto plunged like traditional asset classes. Bitcoin was pronounced dead. A historical analysis by SEBA Research of several assets indicates that except for this event, crypto does not correlate with stock markets.
In spite of BTC price drop, the underlying blockchain technology has operated well. Furthermore, the demand for stable coins is on the rise. Both observations indicate that crypto is supported by a robust technology and is here to stay. Looking at the blockchain network fundamentals, significant drop in difficulty as it was the case last week, has historically been a reliable indicator for price bottom formation.
In this special edition of the Digital Investor, we present our take on the recent crash in financial markets. As the Coronavirus took the entire world by storm, financial markets across the board started tumbling in synchronisation. Amidst this crash, all the correlation theories seemed to be breaking down. Does this mean that digital assets will forever be correlated with broader markets? What happens in this new regime of zero interest rates? We think that in such an environment, cryptocurrencies, as outside money, can prove to be a much needed diversifier.
The Bridge is a publication designed to explain the key concepts behind blockchain and crypto-currencies. If you are unfamiliar with forks, this article is made for you. A fork is the action uses to change the rules that govern a blockchain ecosystem. What are the different types of forks? How do they impact different stakeholders in a blockchain ecosystem? We explain all of this in the March edition of the bridge.
The US authorities rejected the last pending Bitcoin ETF proposal. The decision further delays the adoption of cryptocurrencies in the USA, evidences the controversial decision-making process and brings to the fore more pragmatic and innovative jurisdictions such as Switzerland.
DeFi or decentralised finance has been growing at an astonishing pace. Should you participate in it? If you have an appetite for risk, how can you participate? In this edition of the Digital Investor, we explore the good, the bad, and the ugly of DeFi.
Tokenisation of assets is one of the hottest topics in the fintech industry. Many believe in its potential to change the financial world for the better. In this edition of the Bridge, we talk about tokenisation and everything related to it. If the notion is foreign to you, then this article is for you.
CBDCs & Asset Tokenisation - Digital Regulation in 2020
13 February, 2020
Central bank digital currency (CBDC) and tokenisation are dominating regulatory discussions. A wholesale CBDC is likely to come into being in 2020. Widespread asset tokenisation would give rise to numerous regulatory issues, making advanced jurisdictions such as Switzerland particularly attractive.
It is customary in articles like this to trumpet that “2020 will be the year when digital assets explode”. We are all eager to see blockchain achieve wider adoption, but I believe we need to adopt a slightly longer time horizon. It will most likely take three to five years to fully establish the infrastructural bedrock of this industry. But bearing in mind that the conventional financial institutions we now take for granted took hundreds of years to evolve, a few years is not long to wait.
To achieve the goal of serving as a decentralised platform for all sorts of applications, Ethereum needs to scale. It envisions achieving this by moving from a proof-of-work to proof-of-stake consensus algorithm. In this article, we look at the challenges that arise through this transition and at the yields investors may expect by staking.
In this publication we underscore the importance and the current state of digital assets against the backdrop of looming uncertainty in traditional asset classes. In our market outlook, we take the risk to combine a macro view with trends in the digital asset industry.
SEBA Bank, an integrated bank for digital and traditional assets and licensed by the Swiss supervisory authority FINMA, is now onboarding clients from 10 jurisdictions through a user-friendly digital onboarding process.
The Swiss Federal Council has adopted the dispatch to further improve the DLT/blockchain regulatory framework. Switzerland is consolidating its leading position, reinforcing legal certainty, removing barriers to entry and reducing the risk of abuse.
In this month’s Digital Investor, we start to examine a topic that is set to accompany us in the coming years: what are the price determinants of crypto assets? If you are a crypto investor or plan to become one, this publication is here to help you to trade crypto assets.
SEBA launches its investment solutions with new crypto index
26 November, 2019
SEBA Bank starts its investment business and launches the SEBA Crypto Asset Select Index (SEBAX) for crypto currencies. SEBAX addresses the predominant problem of traditional market value-weighted indices, making index investments interesting for the digital investment market as well.
In this edition of “The Bridge,” we will introduce you to the consensus mechanism, a notion at the heart of all blockchain-based systems. It is the mechanism that creates trust in the system by acting as a truth seeker. We will use the Byzantine General’s problem to explain the two main consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).
Tackling the Issues of Stable Coins and Digital Money
14 November, 2019
International regulators have defined strict authorization criteria for Global Stable Coins (GSC) such as Libra. In the short term, no such coins will go live. They have also made it clear that Central Bank Digital Currencies (CBDCs) are inevitable. China may be the first state to issue one. Overall, this intense regulatory focus is enhancing trust in digital and crypto finance.
Are crypto-assets suitable for institutional investors?
07 November, 2019
For years, crypto-asset has been a confidential asset class for non-institutional investors. However, we observe growing “institutionalisation”. In this issue of The Digital Investor, we give a broad overview of the state of the institutionalisation process to assess whether it has reached a level of development that is advanced enough to attract institutional investors.
Blockchain 101: A simple analogy with a famous board game. Whether you play chess or not, this publication is for you. We invite you to discover the crypto world through the game of chess. Don’t be afraid. No prior knowledge in either blockchain or chess is required.
The Swiss Financial Market Supervisory Authority (FINMA) published guidelines on stable coins (including Libra), thereby increasing regulatory certainty around these type of projects. The Swiss National Bank (SNB) assessed stable coins from a macroeconomic perspective, while the G7 handed off work on regulatory issues to the Financial Stability Forum (FSB)
What makes crypto assets an attractive addition to an investor’s portfolio? Our analysis shows that a small exposure to crypto assets can enhance portfolio performance for the given level of risk as the low correlation of crypto assets with traditional asset classes allows them to act as an effective portfolio diversifier.
Blockchain technology, the Internet of Things melding with the Internet of Money, the convergence of Cryptography, Computer Science and Economics – all of these technologies are enablers of the Fourth Industrial Revolution, which many believe is upon us.