Swiss Bank launches crypto coin backed by physical gold
Digital assets Swiss bank, SEBA, has announced the launch of a new Gold Token; a regulated digital token for investment in and delivery of physical gold on demand through the Ethereum blockchain.
This new product exists as an ERC-20 token, meaning that it is traded on the world’s second-largest blockchain.
“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,” SEBA Bank CEO, Guido Buehler, said.
The Swiss bank noted that its new token differs from the other gold-investment market offers as their product allows clients to redeem their gold at any time without taking on the cost of storage and transportation.
SEBA said that in addition to the physically redeemable value of Gold Tokens, the currency can also be used as a stablecoin. Each token represents 1g ($57) of the metal and is divisible to four decimal places.
SEBA collaborated with precious metal provider, Argor-Heraeus, and precious metal blockchain, aXedras, on the project, stating that this launch will boost the adoption of the industry by providing a cost-effective, secure and straightforward solution for investing into gold.