Loki could tell Seto was awkward about it, but he definitely wanted and appreciated the hug. So he moved to do so, embracing the other fully and warmly. Acknowledging and recognizing, and smiling when he heard the whispered words. Holding it for a good moment, before letting it fade. Letting the other pull back if he wanted.

"...You're a bit too old to be offered adoption like I did with Alice, but I would count you as part of my family here. Your brother too. No strings on either of you."