Swiss Bank Seba Launches Regulated Gold Token, Aims to Bolster ‘Digital Ownership of Physical Gold’

Swiss Bank Seba Launches Regulated Gold Token, Aims to Bolster 'Digital Ownership of Physical Gold'

On December 15, FINMA-licensed Swiss bank, Seba, announced the launch of a gold token that can be delivered in physical form, on-demand, at any time from the firm’s partner refineries. Seba believes the token can be leveraged as a compliant stablecoin “backed by responsibly sourced gold.”

Swiss Bank Introduces ‘Seba Bank Gold Token’ Backed by Physical Gold Stored at Partner Refineries

Switzerland-based crypto bank Seba has introduced a number of new crypto products this year, like adding decentralized finance (defi) tokens to the company’s product lineup. In October, the Swiss bank revealed that customers can earn a yield on crypto holdings in an “institutional-grade” fashion. On Wednesday, Seba revealed its gold token offering that can be traded for physical gold at any time.

“The Seba Bank Gold Token is a landmark development in investment products, enabling investors for the first time to own a digital form of physical gold via a fully regulated, cost-effective, and future-proof solution,” the Swiss bank’s announcement details.

Seba CEO Says Gold Plays a Major Role in the Capital Markets, Seba’s Gold Token Has Many Competitors

According to Seba, the bank worked with a service provider in the precious metal (PM) industry called Argor-Heraeus. The blockchain-based PM platform was developed by Axedras, the Swiss bank’s announcement reveals.

“Seba Bank’s Gold Token can boost the adoption of precious metals by providing a cost-effective, secure and straightforward solution for investing in gold,” the company noted on Wednesday.

“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. The gold standard was once the economic unit of account across the globe, forming the basis of our international monetary system,” Guido Buehler, CEO at SEBA Bank said in a statement.

The Seba CEO added:

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 bank is not the only gold token built on top of blockchain technology, as there are gold tokens issued by Paxos (PAXG) and Tether Limited (XAUT) backed by an ounce of .999 fine gold. During the first week of August, the PM industry giant Kitco launched a gold-backed token on top of Ethereum. Gold-backed tokens have fetched a premium in the past on a few occasions in comparison to gold’s spot market prices.

What do you think about Seba bank launching a gold-backed token that can be redeemed for physical gold? Let us know what you think about this subject in the comments section below.