Swiss bank Seba launches regulated gold token, aims to strengthen ‘digital ownership of physical gold’ – Altcoins Bitcoin News
On December 15, the Swiss FINMA-approved bank, Seba, announced the launch of a gold token that can be delivered in physical form, on demand, at any time from the company’s partner refineries. Seba believes the token can be used as a compliant stablecoin “backed by gold from responsible sources”.
Swiss bank presents âSeba Bank Gold Tokenâ backed by physical gold stored in partner refineries
Switzerland-based crypto bank Seba introduced a number of new crypto products this year, such as the addition of decentralized finance (challenge) tokens to the company’s product line. In October, the Swiss bank revealed that customers can earn a return on crypto holdings in an “institutional grade” manner. Wednesday, Seba revealed its supply of gold tokens which can be exchanged for physical gold at any time.
“The Seba Bank Gold Token is a historic development in investment products, allowing for the first time investors to own a digital form of physical gold via a fully regulated, profitable and sustainable solution”, details the announcement of the Swiss bank.
Seba CEO Says Gold Plays Major Role in Capital Markets, Seba Gold Token Has Many Competitors
According to Seba, the bank worked with a service provider in the precious metals (PM) industry called Argor-Heraeus. The blockchain-based PM platform was developed by Axedras, reveals the Swiss bank’s announcement.
âSeba Bank’s Gold Token can boost the adoption of precious metals by providing a cost-effective, safe and simple solution to investing in gold,â the company noted Wednesday.
âGold plays a major role in the capital markets. With a market capitalization of over $ 11 trillion, it offers investors a reliable hedge against inflation and a store of value regardless of economic turmoil. The gold standard was once the economic unit of account across the world, forming the basis of our international monetary system, âGuido Buehler, CEO of SEBA Bank, said in a statement.
The CEO of Seba added:
With the launch of our innovative Gold Token, we are building on this history to enable investors to own a fully regulated digital form of physical gold for the first time. Physically redeemable directly from refineries on demand at any time, our Gold Token eliminates the friction of gold ownership for investors and provides a cost effective solution to owning the right asset for the new economy goal. .
Seba Bank is not the only gold token built on blockchain technology, as there are gold tokens issued by Paxos (PAXG) and Tether Limited (XAUT) backed by an ounce of fine .999 gold. In the first week of August, industry giant PM Kitco launched a gold-backed token on top of Ethereum. Gold backed tokens have earned a premium in the past a few times over spot market prices for gold.
What do you think of Seba Bank’s launch of a gold-backed token that can be exchanged for physical gold? Let us know what you think of this topic in the comments section below.
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