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SEBA, a Swiss-based digital asset banking platform, has announced the launch of a new token backed by physical gold. The token will serve as digital ownership of gold, and according to the firm, it will be “ready for anytime, on-demand delivery.”
This is a unique offering from SEBA, given that stablecoins in the crypto market are usually backed by fiat currencies.
SEBA launches a regulated gold token
In the announcement issued on Wednesday, SEBA noted that the gold token will be a fully regulated digital asset used for investments and the delivery of physical gold on-demand.
The token will make it cheaper and convenient for investors to access gold, marking a new trend in the stablecoin industry. Investors will get ownership of a digital version of physical gold for the first time. SEBA noted that this product has been fully regulated.
The bank clarifies that the gold token will have different attributes than exchange-traded funds (ETFs) and over-the-counter (OTC) contracts. Unlike the two, it will allow investors to redeem their physical gold holdings at any time, which eradicates the high storage and transport fees associated with the precious metal.
The token can be used in the same way as other stablecoins such as Tether and USDC, allowing trading and acting as a store of value. The attributes of the token are targeted to attract investors from both the traditional and crypto markets.
The CEO of SEBA Bank, Guido Buehler, commented on this development, stating, “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.”
SEBA partners with Argor-Hergeus
The launch of the gold-backed token has been enabled through a partnership with Argor-Heraeus. This is a leading service firm in the precious metal sector. It has also collaborated with aXedras, a precious metal platform implementing blockchain technology.
The launch of SEBA’s gold token can boost the growth of the precious metals sector by offering a cost-effective, secure and easier way for people to invest in gold.
The CEO of Argor-Heraeus, Christoph Wild, opined that the firm was “delighted” to be included in the innovative project that seeks to merge physical and virtual assets.
“The possibility of backing digital tokens with physical, responsibly-sourced gold undoubtedly represents a novel way for investors to access the precious metals sector. Innovation and responsibility are among Argor-Heraeus’ core values since the beginning of our activities and we think that this collaboration is a prime example,” Wild noted.
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