Efinance Group, founded in 2007 and headquartered in Zurich, has announced plans to launch a security token offering that is backed by the firm’s gold assets portfolio. This would make the firm the world’s first to issue a gold-asset-backed security token.
EFG is a global asset firm that specializes in gold investment solutions and effective portfolio management strategies for institutions and private investors around the world. Their portfolio includes the trading of gold ETFs, gold options, gold futures, and gold forwards, and has shares in various gold mining companies globally.
Security tokens are generally backed by assets, profits, or cash flows, and thus have an intrinsic value from the moment they are issued. Additionally, security backed tokens are intended to be fully compliant with regulatory frameworks, allowing investors from all over the world to participate without violating respective securities laws.
Apart from affording liquidity, transparency, and low latency to investors, transactions will reduce overheads while remaining compliant and meeting all reporting requirements.
“EFG understands the potential to scale the firm through this new and unique financing model due to the benefits it brings to all stakeholders involved,” the firm’s representatives explained.
Purchased using Bitcoins (BTC), the main purpose of the security token is to provide investors with quick and liquid access to gold as an investment class. It is designed to play an important role in any investment portfolio, whether as an option for asset diversification or as an alternative to converting digital currency into fiat.