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 any time on-demand delivery,” SEBA announced Wednesday.
- The Zug, Switzerland-based firm said the token differs from other gold derivative investment products, such as exchanged-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.
Read more: SEBA Bank Introduces Program for Clients to Earn Yield on Crypto