Saturday, 21 May 2022

SEBA bank launches landmark first regulated gold token to enable digital ownership of physical gold

5 min read

  • Gold Token offers investors a regulated digital token for investment in and delivery of physical gold
  • Physical gold ready for any time on-demand delivery from partner refineries, avoiding costly fees
  • The SEBA Bank Gold Token acts as a regulated stablecoin, providing secure transaction settlement and trading in crypto markets 

Zug, Switzerland – 15 December 2021 SEBA Bank, a fully integrated, FINMA licensed digital assets banking platform, today announced the launch of its Gold Token, a regulated digital token for investment in and delivery of physical gold on-demand. As announced in March this year SEBA Bank issues a token backed by responsibly sourced gold, providing cost-effective access to the precious metal, and sets a new standard in the stablecoin sector.

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. Unlike traditional gold derivative investment products, such as ETFs and OTC contracts, the gold token allows investors to redeem their physical gold on-demand at any time from partner refineries – avoiding costly transport and storage fees. 

In addition to its physically redeemable store of value, the gold token can also be utilized as a stablecoin. As the stablecoin sector has rapidly grown to reach a market cap of over USD 130 billion, institutional investors are seeking trusted and regulated counterparties to provide services in the space. To address demand, the SEBA Bank Gold Token can be used as a fully compliant stablecoin in the digital asset markets, allowing trading, and acting as a store-of-value to shield investors from volatility across both traditional and crypto markets. 

Guido Buehler, CEO at SEBA Bank, comments, “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. 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.

Developed in conjunction with Argor-Heraeus, a leading service provider in the precious metal industry, and aXedras, a blockchain-based precious metal platform, 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. 

Christoph Wild, CEO Argor-Heraeus, adds, “The aim of our blockchain-based Bullion Integrity Ledger™ is to connect the leading stakeholders of the global precious metal industry to ensure the needed data and product integrity for innovative commodity finance products. The cooperation with SEBA and ARGOR-HERAEUS via our DLT-based business network is a great example to use latest blockchain technology to achieve novel and efficient financing solutions.” 

 

Re-disseminated by The Asian Banker  

 

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