SEBA Bank, a cryptocurrency banking platform based in Switzerland, announced the launch its new digital token that is backed by physical Gold.
SEBA launches Regulated Gold Token
The bank announced Wednesday that the holders of gold tokens could claim digital ownership of physical gold stored in Swiss vaults.
SEBA revealed that the tokens are fully-regulated and based on ERC-20 standards, custodied, and traded via Ethereum blockchain.
Stable Assets for Crypto Traders
Further, the bank stated that because of their low volatility and the regulation of gold tokens, they could be used in trading as well as as a store or as an asset.
Guido Buehler, CEO of SEBA Bank, spoke out about the token launch.
Capital markets play a significant role in gold. It has a market capitalization of more than USD 11 trillion and offers investors a reliable way to hedge against inflation as well as a safe place to store value regardless of economic turbulence. With our new Gold Token, we continue to build on that history to enable investors to purchase a fully regulated digital version of physical gold.
The Swiss digital asset bank pointed out that the new product is significantly different from traditional gold derivatives investment vehicles. Holders can choose to redeem physical gold at any moment without having to bear the costs of transportation.
Buehler said that the gold token is physically redeemable from any refinery on-demand at any moment. This removes the frictions associated with owning gold and provides an affordable solution for those who want to own the asset.
SEBA Partners with Argor-Heraeus & aXedras
According to the announcement, SEBA Bank will manage the custody and issuance of the gold token. It already holds a license as a securities and banking dealer.
According to the bank, the launch of the gold token, which was developed in collaboration with the most prominent precious metal service provider, Argor-Heraeus and the blockchain-based precious material platform, aXedras will increase the adoption of precious metals. It will provide a cost-effective and simple way to invest in gold.
In October, SEBA Bank launched the yield farming service, which allows users to make a profit on their crypto holdings.
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