Switzerland’s SEBA bank launched a gold-backed digital token that represents digital ownership of physical gold so let’s find out more in our latest crypto latest news.
Switzerland’s SEBA bank announced the launch of the new digital token backed by physical gold. In the official announcement, the bank noted that the holders of the gold token can claim digital ownership of the physical gold that is stored in the Swiss Vaults. SEBA disclosed that the tokens are fully regulated and are based on the ERC-20 standard and also traded via the Ethereum blockchain.
The bank added that the low volatility levels of the gold prices and the regulated nature of the gold tokens allow them to be used as stable asses or a store of value. The CEO of SEBA Bank Guido Buehler said:
“Gold plays a major role in the capital markets. With a market cap of over USD 11 trillion, it offers investors a reliable hedge against inflation and a store of value irrespective of economic turbulence… 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.”
The Swiss digital asset bank noted that the new product differs a lot from the traditional gold derivatives investments vehicles since the holders are able to decide to redeem the physical gold at any time without bearing the costs of storage and transportation. Buehler added:
“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.”
According to the announcement, the launch of the custody of the gold token will be managed by SEBA Bank that has a banking and securities dealer license already. The bank said the launch of the gold token is built in collaboration with Argor Heraeus which is a precious metal service provider, as well as aXedras blockchain-based precious metal platform that will boost the adoption of precious metals thanks to its cost-effective and straightforward solution for gold investment. In the meantime, SEBA launched a yield farming service that will enable its users to earn yields on the crypto holdings.
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