SEBA Launches Regulated Gold Token Backed by Physical Precious Metal
Digital asset banking platform SEBA announced on Wednesday that it is offering a gold token. This token will represent the digital ownership of the traditional safe-haven asset.
SEBA’s gold token is a regulated digital token, a stablecoin backed by precious metal. The physical gold is “ready for any time on-demand delivery,” eliminating costly transport and storage fees.
The Zug, Switzerland-based firm said that this token differs from other gold derivatives investment products such as OTC contracts or ETFs because investors can redeem the yellow metal at any time.
The token can act not only as a store of value but also be used as a compliant stablecoin in trading.
“SEBA Bank Gold Token acts as a regulated stablecoin, providing secure transaction settlement and trading in crypto markets,” said the FINMA licensed bank in its official statement.
SEBA aims to provide cost-effective access to gold through this offering, calling it a “landmark” development in investment products.
It “allows investors to own a fully regulated digital form of physical gold for the first time,” said Guido Buehler, CEO at SEBA Bank, noting that with a market cap of $11 trillion, gold plays a major role in capital markets.
However, there are already other digital assets backed by physical gold, such as PAX Gold (PAXG), which was introduced in late 2019 and manages about $12 million in daily trading volume.