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

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On Wednesday, SEBA Financial institution, a licensed Swiss digital property banking platform, launched a regulated digital token backed by bodily gold and exchangeable for supply. SEBA claimed that attributable to 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 difficulty them. In 1971, United States President Richard Nixon took the greenback off the gold normal, 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.

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

Buehler defined the event within the following assertion:

“Redeemable instantly from refineries on-demand at any time; our gold token removes the frictions of proudly owning gold for traders and supplies an economical answer for proudly owning the asset match for function 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 obtained a digital custody license.