Switzerland has the world's most advanced DLT framework
Switzerland is in an excellent position to drive the new digital economy. On the 1st of February 2021, the new DLT (Distributed Ledger Technology) legislation came into force, providing the world's most advanced framework to allow blockchain-based FinTech innovation.
SEBA Bank, the first smart bank in the world to receive a banking and securities dealer licence from the Swiss Financial Market Authority (FINMA) in 2018, represents the symbiosis of technology, blockchain and banking to redefine the future of finance.
Blockchain opens up opportunities with superior features and lower costs within a secure and fully regulated banking environment. The power and elegance of the blockchain are now delivering innovation, driven by 3 key attributes:
• Faster Settlement: Blockchain allow fast settlement (T+0) compared to standard banking settlement systems (T+2 to T+5);
• Security: superior protection of the data held on the blockchain against cyber and other attacks as well as blockchain's defence against double-spending;
• Decentralisation: creating redundancy in the network that ensures a small number of overly-powerful entities do not unduly control the network.
Innovation in blockchain-based client investment products
One of these innovations is the Gold Token, the blueprint for the tokenisation of all other precious metals, metals and commodities, and for commodity finance in general. The Gold Token boasts 1st-priority physical delivery in investor-specified quantities direct from the refinery, virtually eliminating the massive carbon footprint generated by virtually all other physically stored gold investment products for Swiss physical delivery and significantly reducing it for international delivery.
Switzerland is home to the biggest refineries in the world, and we work with the most reputable players who adhere to the highest global Environmental, Social & Governance (ESG) and traceability standards. One gram of gold is equal to one token, with selectable and verifiable provenance and use – a world first. This token is transferred to a wallet, stored in a fully secured environment. A holder can use it as a means of payment, just like crypto or fiat currencies. Holders of Gold Tokens are not charged holding fees typically linked to gold investment, making it not only a means of payment but also the most advantageous way to hold gold.
The Gold Token uniquely combines three key use cases in one:
• A payment token (gold-backed stable coin);
• A store of value; and
• A contract for physical delivery.
All three qualities of blockchain technology – speed, security and decentralisation - are combined in the Gold Token. This advantage is only possible because the tokenisation service is both regulated and integrated into a smart banking platform.
