Swarm launches tradable shares on blockchain
Swarm, the regulated blockchain platform, today announces the launch of a world-first public investment offering for AAPL. TSLA, and two US government bond ETFs on the chain.
The fully asset-backed tokens are available on the Polygon blockchain for both private and institutional investors, with no minimum investment. Trading is available from Thursday 24/7 and complies with German regulation on Swarm’s permitted DeFi platform.
It is the first service of its kind for investors who want to access real-world assets using digital blockchain technology, while meeting full regulatory requirements to provide full confidence to users.
Hedge funds and institutional investors can now access stable and secure global markets 24/7 through Swarm. For those already on-chain, including stablecoin issuers and treasury managers, it means they have less volatile assets to distribute to without having to leave the DeFi ecosystem.
The token offering initially includes AAPL and TSLA shares, the iShares US Treasuries 0-1 Year ETF and the iShares US Treasuries 1-3 Year ETF. Swarm will add more stocks and fair values in the future.
Timo Lehes, co-founder of Swarm, comments: “Swarm is the first entity to offer and trade tokenized treasury bills and shares via a regulated and decentralized platform. We operate within the German regulatory environment, which means we can issue and trade in the real world.assets on the blockchain, unlike any other entity.
“We have started with stocks and bonds and will soon expand this to any asset that needs to be traded on a regulated platform, from carbon credits to real estate or private equity. To date, traditional market players have not had a comprehensive and regulatory compliant solution for issuing and trading of real values on the chain.
“The FTX and Celsius crises last year only highlighted key structural and regulatory weaknesses in the market, demonstrating that crypto-security is too highly correlated and easily manipulated. Regulation, in the right parts of the ecosystem, is critical while decentralization increases the transparency required to build trust.”
Swarm does not take care of the asset-backed tokens, which are controlled by battle-tested code. They can be added to liquidity pools to earn returns, or held in investors’ own Web3 wallets.
The ISIN-based tokens benefit from the trust and stability of traditional markets plus the flexibility and greater access to global liquidity, at a lower cost, on the blockchain. Equity and bond certificates are integrated with traditional financial markets and can be redeemed for the value of underlying assets in the real world.
Lehes adds: “Today’s announcement is important for both DeFi and TradFi. There is clear demand for high-quality assets to become available on-chain. Institutional participants will now be able to distribute assets from traditional markets via blockchain through Swarm.
“Swarm is a hybrid platform, which combines the depth of liquidity and value of traditional financial markets with the benefits of blockchain technology. We are the only trusted platform that institutions with a fiduciary responsibility can use to issue, trade and manage quality securities on the chain. with confidence and on a decentralized way.”
The tokens are issued by SwarmX GmbH, a wholly owned subsidiary of Swarm Markets GmbH, under a prospectus registered with the Financial Market Authority in Liechtenstein and passported to Germany. Secondary trading activities are regulated by Germany’s Federal Financial Supervisory Authority (BaFin) and can be accessed on Swarm’s permitted DeFi platform.
