Switzerland-based digital banking service supplier, SEBA Bank AG has launched tokenized gold providers for its clients.
Per a Forbes report, holders of the Ethereum network-based digital token will be capable to redeem it for bodily gold with any of SEBA’s associate refineries.
The SEBA digital token is a completely totally different product in comparison with different extra gold-backed conventional funding devices resembling Exchange Traded Funds (ETFs) as holders of those tokens can truly redeem them for precise gold on a ratio of 1 to 1. Per the Forbes report, citing Guido Buehler, SEBA Bank’s Chief Executive, the brand new gold token is described as a significant “landmark achievement” for the dear metallic business.
“As issuance and custody of the token is managed by a Swiss bank with a banking and securities dealer license, the token platform can be trusted by institutional investors to offer a secure and regulated platform for investment,” he stated. “In addition, the custody of the physical gold is with regulated Swiss firms, ensuring that asset security is held paramount for both the digital and physical nature of the product.”
SEBA is a regulated digital asset banking providers supplier that’s identified for its extremely compliant merchandise. The new gold-backed digital property additionally observe this compliance path and can even operate as a full-fledged stablecoin like USDT and USDC. While it’s not the primary to drift this sort of product as different gamers, together with Paxos Trust Company had already pioneered the transfer, SEBA says its gold tokens will brandish further utilities that may make them definitely worth the maintain.
Amongst the potential merchandise within the pipeline embody the probability of introducing yield incomes with the gold stablecoins.
“Investors are looking for exposure to a broad range of assets, including stablecoins, crypto yield products, and tokenized assets,” Buehler stated. “SEBA Bank is catering to this demand and opening access to the gold markets for investors in the form of a regulated, cost-effective, and future-proof digital token.”
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