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Modern day challenge coins originated in World War One when a wealthy airman had coins made for his unit to create team spirit. After being shot down and captured he escaped with only the coin in a leather pouch around his neck. He donned clothes he found in a barn, but was recaptured by resistance troops who were about to kill him when he showed his coin as proof he was an American.

Learn more about challenge coin history from these two veterans who make modern military challenge coins http://military.jdrc.us/Articles/History-of-Challenge-Coins.php They just happen to be the folks who make coins for SEAL Team One and other Navy and Army special operations units.

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Q: How did the military challenge coin come about?
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