The Swiss banking institution has introduced a gold cryptocurrency that would enable digital gold ownership. SEBA Bank, a cryptocurrency banking platform located in Switzerland, has launched a new digital token backed by actual gold.
The bank underlined in an official release on Wednesday that holders of gold tokens would be able to claim digital ownership of actual gold housed in Swiss vaults.
SEBA said that the tokens are completely regulated and are based on the ERC-20 standard, with the Ethereum blockchain serving as the custodian and trading platform.
Cryptocurrency Traders Need Stable Assets
Additionally, the bank said that the low volatility of gold prices and the controlled structure of gold tokens may enable them to be utilised as stable assets in trade or as a store of value.
SEBA Bank CEO Guido Buehler said at the coin launch: “Gold is a significant factor in the financial markets. With a market capitalization of more than USD 11 trillion, it provides investors with a stable hedge against inflation and a store of wealth regardless of economic conditions… We are building on this legacy with the introduction of our unique Gold Token, which will enable investors to hold a fully regulated digital version of actual gold for the first time.”
According to the Swiss digital asset bank, its innovative product is fundamentally different from typical gold derivatives investment vehicles in that holders may redeem their actual gold at any moment without incurring storage or transit costs.
“Because our gold token is physically redeemable directly from refineries at any moment, it eliminates the frictions associated with gold ownership for investors and offers a cost-effective option for holding the asset that is fit for purpose in the modern economy,” Buehler concluded.
SEBA Forms a Strategic Partnership with Argor-Heraeus and aXedras
According to the release, SEBA Bank will oversee the issue and custody of the gold tokens. SEBA Bank currently has a banking and securities dealer licence.
The bank stated that the launch of its gold token, which was developed in collaboration with Argor-Heraeus, a leading precious metal service provider, and aXedras, a blockchain-based precious metal platform, will increase the adoption of precious metals by providing a cost-effective, secure, and straightforward method of investing in gold.
Meanwhile, SEBA Bank introduced a yield farming service in October to let its customers to earn interest on their cryptocurrency holdings.
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