Swarm Markets GmbH, a regulated blockchain platform whose trading activities fall under the jurisdiction of the German BaFin, today launched the world’s first tradable, DeFi-compatible stocks and bonds.
The tokenized securities are public investment offerings and will bring Apple and Tesla shares, as well as iShares US Treasury Bond 0-1 Year and iShares US Treasury Bond 1-3 Year Exchange Traded Funds (ETFs) to decentralized funding, the company said in a press release.
Swarm to spend assets on Polygon
According to the platform, the assets are fully backed and issued by the company’s wholly-owned subsidiary, SwarmX GmbH, on the Polygon network. Trading is open to both retail and institutional investors, Swarm noted, with those available starting Thursday, February 23, 2023. Traders can access the market 24/7 via the company’s approved DeFi platform.
The company plans to expand the offering to more stocks and other real-world assets, including carbon credits, real estate and private equity. The launch gives investors the opportunity to take advantage of the benefits of the digital blockchain.
Swarm co-founder Timo Lehes said:
“Today’s announcement is significant for both DeFi and TradFi. There is a clear demand for high quality assets available on-chain. Institutional participants will now be able to provision assets from traditional markets via blockchain through Swarm.”
He added:
“The FTX and Celsius crises over the past year have only highlighted the key structural and regulatory weaknesses of the market, showing that crypto collateral is overly correlated and easily manipulated. Regulation in the right parts of the ecosystem is critical, while decentralization increases the transparency needed to build trust.”
According to the announcement, Swarm will not custodian the DeFi-compatible securities and users can add them to liquidity pools to earn returns. Alternatively, investors can hold the assets in their own Web3 wallets.
The Post Swarm Markets introduces the world’s first DeFi-compatible stocks and bonds, first appearing on Invezz.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.