- HKIFA admin
Swarm launches stocks and ETF trading platform using DeFi
By Daniel Lanyon
Blockchain-based but non-crypto securities such as Apple and Tesla stock can be traded on Swarm’s platform
Berlin-based fintech company Swarm has launched a platform that enables ETF investments to occur on decentralised finance (DeFi).
Swarm offers retail and institutional investors the opportunity to invest in Apple, Tesla and two US Treasury bond ETFs via fully asset-backed tokens based on the Polygon blockchain.
Unlike regular trading, this allows investors to buy and sell the tokens at any time in the day even when markets are closed through a process the firm said is fully compliant with German regulation.
Another key difference is that custody of the stocks is fully taken by the owner, cutting out a traditional cost for trading.
The firm said it plans to add more stocks and real-world assets in the future.
Timo Lehes, co-founder of Swarm, said: “There is demand for high-quality assets to become available on-chain. Institutional participants will now be able to deploy assets from traditional markets via blockchain.
“We have started with stocks and bonds, and will soon extend this to any asset that needs to be traded on a regulated platform, from carbon credits to real estate or private holdings. To date, traditional market participants have not had a comprehensive and regulatory-compliant solution for issuing and trading real-world assets on-chain.”
This story was originally published on AltFi