SEBA Bank, an authorized Swiss digital asset banking platform launched on Dec. 15 a regulated token digitally backed with physical gold that could be traded for delivery. SEBA claimed the token, which is regulatory compliant and has low volatility in gold prices could be used for on-chain transactions.

This means that the design of the golden token looks similar to those used in gold standards. These fiat currencies can also be converted to physical gold, and are supported by faith in their governments. The U.S. president Richard Nixon removed the dollar from the gold standard in 1971. According to the 1944 Bretton Woods system, every $35 could be converted into one ounce gold.