How Swarm Markets Uses RWA Tokenization

Swarm Markets (SMT) is a tokenized asset defi trading platform that bridges the gap between DeFi and TradFi. By tokenizing real-world assets like gold, stocks, and U.S. Treasury Bonds ETFs, the platform brings previously illiquid assets to a global market. Below, we will discuss how it works, and how the concept of real world asset tokenization could evolve in the future. 

How the Platform Works

The platform is designed to be the home of blockchain finance innovation, living on the Ethereum blockchain. Its token, SMT, is a high-utility token that the platform is built around. As governance tokens, SMT allows holders to vote on changes, such as trading fees or the addition of new assets. Additionally, the tokens are used for paying fees within the platform. 

RWA Tokenization 

It offers real world asset tokenization, including gold, stocks, and a US Treasury Bonds ETF. All tokenized assets are 100% backed, so traders can redeem them for the underlying real world assets at any time. Additionally, the platform releases monthly disclosures of the underlying assets as part of transparency measures. 

Benefits of Swarm Markets

Swarm Markets combines the transparency and efficiency of DeFi with the regulatory safeguards of TradFi. It is built for both independent and institutional investors, and offers traders an opportunity to access opportunities in the DeFi space with reduced risk. Organizations or individuals that pass their KYC and AML checks can start trading on the platform. These checks ensure compliance with international anti-money laundering laws.

Swarm Markets has a license from Germany’s Federal Financial Supervisory Authority (BaFin), which assures traders that their investments are protected and that Swarm Markets operates under Europe’s strict financial regulations.

Users also benefit from institutional-grade security, which includes regular smart contract audits and robust online security protocols. Thanks to the numerous tools and APIs offered, Swarm Markets makes it easy for TradFi investors to integrate DeFi services.

Is Swarm Markets Good For DeFi Investing?

For new investors, it offers a safe and efficient method to gain exposure to DeFi while mitigating risks associated with the sector. These users benefit from a smooth onramp into Web3, much needed in our industry.

Day traders will benefit from its instant liquidity, which can be lacking in the mainstream financial sector. This means users can trade tokenized assets without delays, as smart contracts automate transaction settlements in real-time.

Swarm Markets has been giving traders access to the best of DeFi and mainstream financial markets. While they only have a limited number of securities on which to trade, they will likely add more in the future as tokenized assets gain widespread acceptance.

Conclusion

Swarm Markets is a great example of regulated DeFi trading platforms using blockchain technology to make truly meaningful change in a centralized industry. By offering tokenized real-world assets on-chain, it democratizes access to previously inaccessible investments without sacrificing legality. Swarm Markets represents an innovative solution bridging the gap between traditional and decentralized finance.