Swarm, a BaFin-regulated decentralised finance (DeFi) platform, has launched its permissionless real-world assets (RWAs) trading platform. Called “Open dOTC”, the over-the-counter platform is a decentralised non-governed public goods service network built on the Ethereum blockchain.
Open dOTC utilises smart contracts to remove slippage, provide for instant settlement and reduce credit and counterparty risks via fully collateralised trades. Traders can access tokenized US Treasury bond ETFs, while tokenized stocks for companies such as Apple, Tesla are to be added.
Adoption of tokenized assets is impeded by a lack of viable platforms where they can be traded, according to Swarm co-founder Timo Lehes. “We know the crypto market is bifurcating into regulated and non-regulated offerings, and we think it is imperative people have a choice of how they trade and access assets,” he said.
The launch of Open dOTC means more people can take advantage of the RWA narrative that has exploded in 2023 and will continue in 2024 and beyond, Lehes added.
Swarm has been in the regulatory process for three years, giving it a head start on other players in the space. It hopes to play a crucial role in the global tokenization market, estimated to grow to over $10 trillion by 2030.
Open dOTC will have a fixed 0.25% trading fee cost, with this used to buy and burn Swarm’s ERC-20 token $SMT. This is likely to impact the value of $SMT, which currently trades around $0.31. Over $8.3 million worth of assets is locked on the Swarm Protocol.
Swarm will continue to run its permissioned platform, ensuring users intent on using a regulated, decentralised platform continue to do so. Share this article, categories and tags are also available.