Switzerland-based cryptocurrency banking platform SEBA Bank has announced the launch of its new digital token backed by physical gold.
SEBA launches a regulated gold token
In an official announcement on Wednesday, the bank noted that gold token holders can claim digital ownership of physical gold stored in Swiss vaults.
SEBA has revealed that tokens are fully regulated and exist based on the ERC-20 standard, held and traded through the Ethereum blockchain.
Stable Assets for Crypto Traders
The bank further added that the low levels of gold price volatility and the regulated nature of gold tokens could allow them to be used as stable assets in trading or even as a store of value.
Speaking on the token launch, SEBA Bank CEO Guido Buehler said:
“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… With the launch of our innovative Gold Token, we are building on this story to allow investors to own a 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 derivative investment vehicles, as holders can decide to redeem their physical gold at any time without incurring the costs of storage and retrieval. transport.
“Physically redeemable directly from refineries on demand at any time, our gold token removes the friction of gold ownership for investors and provides a cost effective solution to owning the asset fit for the new economy,” said added Buehler.
SEBA joins forces with Argor-Heraeus and aXedras
According to the announcement, the issuance and custody of the gold token will be handled by SEBA Bank, which already has a banking and securities broker license.
The bank said the launch of its gold token, which was built in collaboration with leading precious metals service provider Argor-Heraeus and blockchain-based precious metals platform aXedras will boost adopting precious metals by providing a cost-effective, safe and simple solution for investing in gold.
Meanwhile, in October, SEBA Bank launched a yield farming service to allow its users to earn a yield on their crypto holdings.
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