SEBA Bank Offers Token for Digital Ownership of Gold

The token will be backed by physical gold, “ready for anytime, on-demand delivery.”

Dec 15, 2021 at 9:48 a.m. UTC
Updated Dec 20, 2021 at 9:39 p.m. UTC

Digital asset banking platform SEBA is offering a stablecoin that serves as a token for digital ownership of gold.

  • The token will be backed by physical gold, “ready for anytime, on-demand delivery,” SEBA announced Wednesday.
  • The Zug, Switzerland-based firm said the token differs from other gold derivative investment products, such as exchange-traded funds (ETFs) or over-the-counter (OTC) contracts, because investors can redeem the physical metal at any time.
  • The token can also be used as a compliant stablecoin in trading or act as a store of value, SEBA said.
  • Stablecoins and other digital assets backed by physical redeemable gold are not new, however, with New York-based exchange Paxos introducing one in September 2019. According to CoinGecko, PAX gold (PAXG) has a daily trading volume of just under $11.7 million.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Jamie Crawley is a CoinDesk news reporter based in London.