SEBA Bank launches regulated gold token to enable digital ownership of physical gold

On Dec. 15, SEBA Financial institution, a licensed Swiss digital belongings banking platform, launched a regulated digital token backed by bodily gold and exchangeable for supply. SEBA claimed that resulting from its regulatory-compliant nature and the low volatility of gold costs, the gold token might ultimately be used as a stablecoin for on-chain transactions.

In different phrases, the design of the gold token bears similarity to gold requirements, the place fiat currencies are backed by their exchangeability to bodily gold along with religion entrusted in governments that problem them. In 1971, U.S. President Richard Nixon took the greenback off the gold customary, the place it was established that each $35 in {dollars} could possibly be exchanged for one ounce of gold as per the 1944 Bretton Woods system.

Gold-backed currencies are recognized for his or her capacity to get rid of hyperinflation — a standard concern amongst crypto fans. Nevertheless, additionally they bear the draw back of prolonging financial depressions as governments’ capacity to print stimulus is restricted by gold provide. No nation on the earth at present operates on gold or silver requirements.

Buehler defined the event within the following assertion:

“Redeemable immediately from refineries on-demand at any time; our gold token removes the frictions of proudly owning gold for traders and gives a cheap answer for proudly owning the asset match for objective within the new economic system.”

Beforehand, SEBA launched a program for customers to earn yields on crypto. It’s the first bank within the nation to have acquired a digital custody license.