SEBA, a digital asset-banking platform, has launched a regulated token backed by physical gold with instant on-demand delivery.
The Switzerland-based company says that the new token is different from other gold derivatives like ETFs and OTC contracts since it is instantly redeemable. It adds that the on-time delivery cuts on the storage charges.
SEBA notes that the token can be used as a compliant stablecoin when trading or as a store of value. The digital assets offer secure transaction settlement and trading in the digital markets. The stablecoins market has surged to more than $130 billion market capitalization.
PAXOS introduced similar stablecoins, PAX Gold, supported by physical redeemable gold bars in 2019. PAXG registers daily trading volumes of around $11.7 million.
SEBA made the announcement for the launch in March and sought to offer cost-effective access to the precious commodity and establish a new standard in the stablecoins space.