Seba Bank Launches Digital Gold Token
Posted by Colin Lambert. Last updated: December 16, 2021
Switzerland’s Seba Bank has launched Gold Token, a regulated digital token for investment in and delivery of physical gold on-demand, offering what the firm says is a cost-effective access to the precious metal.
The firm adds the 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, Seba adds.
In addition to its physically redeemable store of value, the gold token can also be utilised 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.
“Gold plays a major role in the capital markets. With a market cap of over $11 trillion, it offers investors a reliable hedge against inflation and a store of value irrespective of economic turbulence,” says Guido Buehler, CEO at Seba Bank. “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.”
The token was developed in conjunction with Argor-Heraeus, a service provider in the precious metal industry, and aXedras, a blockchain-based precious metal platform.
“[This project brings] together the advantages of both digital and physical assets,” says Christoph Wild, CEO Argor-Heraeus. “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.”