Smart Valor, a stock exchange that is based in Baar, is offering a new trading opportunity in the form of gold. It has listed a token covered by physical gold. According to information from Smart Valor itself, it will be the first stock exchange in Europe to offer trading in tokenized physical gold.
Particularly in view of the coronavirus crisis, investment in gold represents a safe investment option for investors, Smart Valor explains in a press release. With the gold token, investment is made easier, as neither a treasury nor a bank account nor an investment account are necessary. Investors only need a virtual Ethereum wallet, as the tokenization process is handled by way of the Ethereum blockchain.
In the press release, Smart Valor also discusses the difference between a gold token and gold ETFs, which are a product already familiar to investors. In this regard, gold tokens can be traded outside of the banking system (i.e. peer-to-peer), which is not the case with gold ETFs. Gold can now therefore be used not only as an investment, but also as a payment method in its own right.