On December 15, FINMA-licensed Swiss bank, Seba, announced the launch of a gold token that can be delivered in physical form, on-demand, at any time from the firm’s partner refineries. Seba believes the token can be leveraged as a compliant stablecoin “backed by responsibly sourced gold.”
Swiss bank presents “Seba Bank Gold Token” 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. On Wednesday, Seba unveiled its offering of gold tokens that can be exchanged for physical gold at any time.
“The Seba Bank Gold Token is a landmark development in investment products, enabling investors for the first time to own a digital form of physical gold via a fully regulated, cost-effective, and future-proof solution,” the Swiss bank’s announcement details.
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, the Swiss bank’s announcement reveals.
“Seba Bank’s Gold Token can boost the adoption of precious metals by providing a cost-effective, secure and straightforward solution for investing in gold,” the company noted on Wednesday.
“Gold 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, ”Guido Buehler, CEO of SEBA Bank, said in a statement.
The Seba CEO added:
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. 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.
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.
