World first: BaFin-regulated Swarm launches US stock and bond trading on the Polygon blockchain
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.
Regulated blockchain platform Swarm has launched a public investment offering for AAPL. TSLA, and two on-chain US Treasury Bond ETFs, in a world first for the world of fully regulatory tokenized securities, the firm announced.
AAPL, TSLA and US Treasury Bonds will be the first tokenized securities available on the Polygon blockchain for both retail and institutional investors, with no minimum investment.
Trading of the fully asset-backed tokens is available from Thursday 24/7 and is compliant with German regulation on Swarm’s permitted DeFi platform.
“We can issue and trade real assets on the blockchain, unlike any other entity”
Swarm co-founders Philipp Pieper and Timo Lehes are proud to announce that this 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 give users full confidence .
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 real-world assets on blockchain, unlike any other entity.
“We have started with stocks and bonds and will soon expand this to all assets that need 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 issuance and trading with 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.”
“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, combining 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 security on the chain with confidence and in a decentralized manner.”
SwarmX GmbH, the issuer of the stock and bond symbols, is a wholly owned subsidiary of Swam Markets GmbH, under a prospectus registered with the Financial Market Authority in Liechtenstein and passported to Germany. Trading activities on Swarm infrastructure fall under BaFin in Germany.
Secondary trading activities are regulated by Germany’s Federal Financial Supervisory Authority (BaFin) and can be accessed on Swarm’s permitted DeFi platform.
Tokens can earn returns on liquidity pools or be held in Web3 wallets
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.
Swarm does not care for the asset-backed tokens. 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.