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DeFi platform Swarm has launched a public investment service for tokenized fixed income exchange-traded funds (ETFs).
The token offering initially included shares in Apple and Tesla and two shares. iShares US Treasury ETFs with Defined Maturities zero to one and 1 to 3 Year.
The offering will integrate equity and bond tokens with traditional financial markets, allowing investors and hedge funds to redeem the value of the tokens for the value of the underlying assets.
As such, tokenized bond ETFs offer investors cost-effective access to liquidity, along with the benefits of traditional market stability and blockchain transparency.
As a result, Swarm retail and institutional users have access to tokens on the Polygon blockchain, which are stored by battle-tested code. These tokens require no minimum investment and investors can choose to add them to the liquidity pool to earn yield or keep them in their web3 wallet.
For investors already on-chain, such as stablecoin issuers and financial controllers, Swarm’s latest announcement will allow them to deploy to less volatile assets without leaving the DeFi ecosystem.
Looking back at the launch, Swarm co-founder, Timo Rehesrecognizes the gap between traditional market participants and regulated solutions for issuing and trading real-world assets on-chain.
” FTX and Celsius Last year’s crisis has only highlighted key structural and regulatory weaknesses in the market, showing that crypto collateral is too highly correlated and easy to manipulate,” said Lehes.
Swarm seeks to overcome these weaknesses with a hybrid platform that combines the depth of liquidity, the value of traditional financial markets, and the benefits of blockchain technology.
It will be the first DeFi platform to offer and trade tokenized government bonds and stocks, and its secondary trading activities are regulated by the German government. Federal Financial Supervisory Authority (buffin).
We operate within a German regulatory environment, which means that, unlike other entities, we can issue and trade real-world assets on the blockchain. sex.”
The platform’s launch announcement confirms the company’s intention to offer more equity and real-world assets in the near future.
We started with equities and bonds, but we plan to soon extend this to any asset that needs to be traded on a regulated platform, from carbon credits to real estate and private property, concludes Lehes. increase.
Trading is now available from Thursday 24/7 and complies with German regulations for Swarm’s permitted DeFi platforms.
