Swiss financial institution SEBA launches a gold-backed token

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Swiss financial institution SEBA on December 15 announced the thought of ​​combining classic finance with cryptocurrency, which is a gold-backed token. Swiss fi...

Swiss bank SEBA launches a gold-backed token

Swiss financial institution SEBA on December 15 announced the thought of ​​combining classic finance with cryptocurrency, which is a gold-backed token.

Swiss bank SEBA launches a gold backed token
Swiss financial institution SEBA launches a gold-backed token

SEBA stated the coin is identified as Gold Token, a gold-backed digital token that has been authorized by the Swiss Financial Markets Authority (FINMA).

Specifically, Gold Token permits holders the proper to trade serious gold from SEBA at any time, an benefit that the financial institution claims is superior to other gold derivative investment goods this kind of as: ETFs or OTC contracts. In addition, the tokenization of gold substantially lowers storage and transportation prices.

SEBA says Gold Token can also be applied as a stablecoin, serving as a “storm” asset for cryptocurrency traders.

SEBA CEO Guido Buehler stated:

“Gold plays a really critical function in the monetary markets. With a market place capitalization of above $ eleven trillion, it presents traders a hedge towards inflation and a retail outlet of worth towards financial fluctuations. The gold conventional was as soon as the planet unit of payment, assisting to form today’s financial process.

With the launch of Gold Token, we are giving traders a digital model of gold metal. Holders have the proper to exchange tokens for gold at any time, getting rid of barriers to ownership of the metal and building it a price-successful answer for the new digital economic climate. “

The thought of ​​a gold-backed cryptocurrency token essentially dates back to 2019, in the kind of PAX Gold (PAXG) from Paxos, the issuer of USDP and BUSD stablecoins. However, this coin is not extensively applied, with a 24-hour trading volume of just above $ eleven million.

Traditional banking institutions in Europe in latest many years have continually moved to “invade” the cryptocurrency discipline, this kind of as the Commercial Bank of Ukraine which examined the stellar blockchain-based mostly CBDC (XLM). ), the German banking group Sparkasse has launched a cryptocurrency wallet, Swiss BBVA Bank presents ETH goods to clients and Societe Generale Bank has utilized for a twenty million DAI loan on MakerDAO.

Across the Atlantic, several US banking institutions are also commencing to give cryptocurrency custody solutions. There are even rumors that the Wall Street giants are commencing to construct a mortgage loan loan product or service in the kind of Bitcoin.

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