Switzerland’s SEBA Bank wants to use Aave’s institutional DeFi platform

A digital asset-focused bank in Switzerland is seeking to become whitelisted on Arc, the institutional platform developed by the team behind DeFi lending protocol Aave.

In a governance post shared Tuesday, a representative from the bank said that it has sought the white-listing in order to enable its clientele to more broadly access the Aave platform, stating that “[d]ue to various regulatory restrictions in their jurisdictions, SEBA’s institutional clientele has not been able deploy liquidities at large scale in Aave until now.”

“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 in protocol revenues,” the rep said.

“SEBA has received increasing institutional demand to access DeFi liquidity protocols like Aave over the past months,” they later explained in the post, noting: “SEBA has a significant interest from its client base to participate in Aave Arc and with its tight connections to money managers in Switzerland and beyond, SEBA is ideally positioned to bridge institutional liquidities in the Aave Arc protocol.”

As previously reported, Arc is a permissioned platform, meaning that participants have gone through a know-your-customer process and, via Arc, can participate with other whitelisted users in a dedicated lending pool.