The Magazine for Asian Investors
On Dec. 15, SEBA Bank, a Swiss-licensed digital asset banking platform, launched a regulated digital token backed by real gold that can be exchanged for delivery.
SEBA argues that gold tokens can eventually be used as stablecoins for on-chain transactions due to the regulatory nature and low volatility of the gold price.
“Gold is important in the capital market, with a market capitalization of more than $11 trillion. This allows investors to hedge inflation and store value regardless of economic turmoil,” said SEBA Bank CEO Guido Buehler.
Gold-backed currencies are known for their ability to stave off hyperinflation, a common fear among crypto enthusiasts. The downside governments bemoan, however, is that they are unable to print stimulus because the gold supply is limited. No country in the world currently operates on a gold or silver standard. That’s how this token was born.
“Our gold token removes the barriers to gold ownership for investors, and provides a cost-effective solution for owning assets that fit their objectives in the new economy,” said CEO Guido Buehler.
SEBA had previously launched a crypto return program and was the first bank in the country to receive a digital custody license.