New data shows real-world demand for tokenized assets
Swarm, a regulated blockchain platform, has released trading activity data for the first month since the launch of tokenized public stock and bond ETFs on February 24, showing an 11% increase in platform users and three product sales.
The decentralized platform, which offers investors tokenized Apple and Tesla shares, as well as the iShares US Treasuries 0-1 Year ETF and the iShares US Treasuries 1-3 Year ETF, has seen significant real-world interest in its tokenized assets. In its first month of trading, Swarm experienced almost 7% more growth than it had experienced in the previous 6 months.
Alongside the increase in registrations, there was great demand for the assets themselves. The platform buys stocks and bonds from a traditional German broker to sell tokenized versions to investors. In the first month, Swarm bought modest amounts of each asset as it builds liquidity on the platform.
In the first month, Swarm sold out of the products on three separate occasions, with the iShares US Treasuries 1-3 Year ETF selling out on the first day of trading on February 24, Tesla shares selling off on February 28 and Apple shares selling off in March. 13.
Delving deeper into trading activity, the total value of securities traded through the first month was $79,433, with each product getting off to a strong start in sales – $33,679 for the iShares US Treasuries 1-3 Year ETF, $17,221 for iShares US Treasuries 0-1 Year ETF, $15,766 for Tesla and $12,767 for Apple.
Timo Lehes, co-founder and CEO of Swarm, said: “We knew there was significant demand for equity and bond ETFs from our community and beyond, but the response we’ve seen over the past month has exceeded our expectations. We’ve received a significant volume of incoming inquiries from institutions that need to use tokenized securities to address security and financial issues. Others have asked about tokenization of other asset classes, which all attest to the need for solutions like this.”
Philipp Pieper, co-founder and CEO of Swarm, continued: “This launch is just the beginning. We plan to add many more trading options to the platform, including new assets and liquidity pools that will promote 24/7 trading hours and instant settlement. We believe that the tokenization of real-world assets is a crucial step in fusing the best of DeFi and TradFi, and Swarm is at the forefront of this innovation during a crucial time for the crypto space.
Swarm values transparency and investor protection above all else, and as such provides monthly disclosures to ensure that the amount of underlying assets held in custody is in line with the amount of share certificate tokens in circulation on the blockchain each month. All disclosures are publicly available on the SwarmX docs page, the issuing entity for tokenized security tokens.
