SEBA Bank, a Switzerland digital asset bank regulated by FINMA, has launched a gold token. This digital asset represents physical gold and has rights for physical delivery.
The SEBA Bank Gold Token is designed to simplify the process of investing in gold as a digital asset as a regulated product. SEBA Bank explains that unlike gold-based ETFs for OTC contracts the gold token allows investors to redeem their physical gold on-demand at any time from partner refineries, but avoids transport and storage fees if they do not redeem.
SEBA notes that its gold token can be utilized as a stablecoin acting as a store-of-value to shield investors from volatility across both traditional and crypto markets.
Guido Buehler, CEO at SEBA Bank, said that gold plays a major role in the capital markets offering investors a reliable hedge against inflation and a store of value irrespective of economic turbulence.
“The gold standard was once the economic unit of account across the globe, forming the basis of our international monetary system. 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.”
The gold toke has been developed in partnership with Argor-Heraeus, a service provider in the precious metal industry, and aXedras, a blockchain-based precious metal platform.
Christoph Wild, CEO Argor-Heraeus, said the aim of their blockchain-based Bullion Integrity Ledger is to connect the leading stakeholders of the global precious metal industry to ensure the needed data and product integrity for innovative commodity finance products.
“The cooperation with SEBA and ARGOR-HERAEUS via our DLT-based business network is a great example to use latest blockchain technology to achieve novel and efficient financing solutions.”
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