Swarm Markets GmbH launches world-first securities-backed tokens

presale final stage
presale final stage

Swarm Markets GmbH launches world-first securities-backed tokens

By Charles Thuo - min read
Updated 22 February 2023
  • These are the first DeFi-compatible securities.
  • The stocks and bonds token will be issued by SwarmX GmbH, a wholly-owned subsidiary of Swarm Markets GmbH under a prospectus registered with the Financial Market Authority in Liechtenstein. 
  • Currently available tokens are built on Polygon.

Regulated blockchain platform Swarm Markets GmbH has announced the launch of the world-first decentralized finance (DeFi) compatible securities. The first DeFi-compatible securities that the platform has launched are public investment offerings for Apple, Tesla, and two US Treasury Bond ETFs.

The asset-backed tokens are available on the Polygon blockchain for institutional and retail investors and trading will be available starting on Thursday.

The tokens, which are ISIN-based, benefit from the trust and stability of traditional markets and the flexibility and greater access to global liquidity, at a lower cost, on the blockchain.

Swarm has ensured that Swarm’s permission DeFi platform is compliant with German regulations.

Accessing real-world assets using blockchain technology

Swarm’s asset-based tokens are the first of their kind for investors interested in accessing real-world assets using blockchain technology while meeting full regulatory requirements. It is also interesting since the launch comes at a time when the US Securities and Exchange Commission (SEC) is deemed to be cracking down on crypto in the United States.

Institutional investors and Hedge funds can access the Apple and Tesla stock, iShares US Treasury bond 0-1 year ETF and iShares US Treasury bond 1-3 year ETF DeFi compatible tokens 24/7 through Swarm. Swarm has pointed out that it will add more asset-backed tokens in future.

In a statement, Swarm said:

“We have started with stocks and bonds, and will soon extend this to any asset that needs to be traded on a regulated platform, from carbon credits to real estate or private holdings. To date, traditional market participants have not had a comprehensive and regulatory compliant solution for issuing and trading real-world assets on-chain.”

Most importantly, Swarm does not take custody of the asset-backed tokens; the tokens are controlled by battle-tested code. Owners of the tokens can choose to either keep the tokens in their Web3 wallets or add them to liquidity pools to earn yield.