Swiss SEBA Bank to Join Aave’s Institutional DeFi Platform Arc

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Swiss SEBA Bank is aiming at joining the permissioned institutional DeFi platform, Arc, built by popular DeFi protocol Aave.

According to a governance post on Aave’s governance portal, Swiss digital asset-focused bank SEBA has submitted a proposal to Aave Governance for adding SEBA Bank as a whitelister to Aave Arc.

The bank said that its clients were showing an increasing interest in crypto-earning products. The bank serves professional and institutional clients with crypto services like lending and staking. The governance post reads:

“Initially lending crypto and staking with SEBA, those investors are now showing significant interest for accessing yields in DeFi protocols. Due to various regulatory restrictions in their jurisdictions, SEBA’s institutional clientele has not been able to deploy liquidities at large scale in Aave until now.”

Aave Arc is a permissioned version of DeFi protocol Aave designed for institutions that required stringent KYC verification. Original Aave protocol is a lending protocol where token holders deposit funds into liquidity pools. Others can borrow tokens from these pools and will pay the tokens back, with interest. This generates a yield for the lenders.

Aave Arc, a rebranded name from Aave Pro, was launched in September of 2021. Arc’s goal is to provide institutional investors who face stringent regulatory requirements with access to such DeFi protocols in a limited capacity. The platform will enable whitelisted participants to take part in the permissioned lending and borrowing pool. Participants will only be able to borrow from and lend to other whitelisted participants.

These features allow the clients of regulated institutions to take part in the DeFi space which otherwise, is not possible due to regulatory concerns. SEBA Bank’s proposal reads:

“The launch of Aave Arc with its permissioned layer represents a great opportunity for them to access DeFi yields while remaining compliant with their regulatory obligations. At SEBA, we believe that this will directly benefit the Aave community with institutional liquidities accelerating growth in TVL and protocol revenues.”

According to the bank, its addition to Aave Arc will bring a large institutional client base that includes crypto companies, hedge funds, private banks, and asset managers to the platform and bridge institutional liquidities in the Aave Arc protocol.

SEBA, founded in 2018, is a regulated Zug-based digital asset bank focused on bridging traditional finance and DeFi. The bank offers its clients many crypto products that include SEBA Earn and cold-storage custody solutions. As Crypto Economy reported, SEBA has recently launched SEBA Gold Token, a stablecoin backed by gold value.


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