The Switzerland-based cryptocurrency banking platform, SEBA Bank, has announced on December 15, the launch of its new digital token backed by physical gold.
The gold tokens holders can claim digital ownership of the physical gold stored in Swiss vaults. The custody and issuance of the gold token will be managed by SEBA Bank, which already has a banking and securities dealer license. SEBA further added that the tokens are fully regulated and exist based on the ERC-20 standard, custodied and traded via the Ethereum blockchain.
The bank further added – In addition to its physically redeemable store of value, the gold token can also be utilised as a stablecoin in the digital asset markets, allowing trading, and as a store-of-value to shield investors from volatility across both traditional and crypto markets.
“Gold plays a major role in the capital markets. With a market cap of over USD 11 trillion, it offers investors a reliable hedge against inflation and a store of value irrespective of economic turbulence… With the launch of our innovative Gold Token, we are building on this history to allow investors to own a fully regulated digital form of physical gold for the first time.”
The Swiss digital asset bank noted that its new product differs significantly from traditional gold derivatives investment vehicles since holders can decide to redeem their physical gold at any time without bearing the cost of storage and transportation.
“Physically redeemable direct from refineries on-demand at any time, our gold token removes the frictions of owning gold for investors and provides a cost-effective solution for owning the asset fit for purpose in the new economy,” Buehler added.
The bank said gold token,was built in collaboration with the leading precious metal service provider, Argor-Heraeus, and aXedras, a blockchain-based precious metal platform.
CEO Argor-Heraeus, Christoph Wild says: “The cooperation with SEBA and Argor-Heraeus via our distributed ledger technology-based business network is a great example to use latest blockchain technology to achieve novel and efficient financing solutions.”
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