SEBA Bank (a Swiss licensed digital assets banking platform) launched Wednesday a regulated token made of digital currency that can be delivered and backed with physical gold. SEBA said that the regulatory-compliant token and low volatility of gold prices would allow the token to be used in the future as a stablecoin.

The design of the token is similar to the designs for gold standard fiat currencies, which can be exchangeable to physical gold and have faith in the governments who issue them. Nixon, the United States President, removed the dollar form the gold standard. It was then established that $35 dollars could be exchanged to one ounce of pure gold according to the 1944 Bretton Woods System.