Swarm Introduces Open dOTC for Trading Tokenized Real-World Assets

12:42 pm
December 14, 2023

Swarm has recently unveiled its permissionless real-world assets (RWAs) trading platform, Open dOTC. The platform, built on the Ethereum blockchain, offers a decentralised public goods service network for traders. Alongside tokenized US Treasury bond ETFs, the platform plans to include tokenized stocks of major companies like Apple and Tesla in the near future.

Targeting Tokenized RWAs Market

Open dOTC is designed to leverage smart contracts to facilitate instant settlement, remove slippage, and reduce credit and counterparty risks through fully collateralised trades. The platform aims to tap into the rapidly expanding tokenization market, projected to exceed $10 trillion by 2030. Swarm is positioning itself to be a significant player in this sector by providing a viable platform for trading tokenized assets.

According to Swarm co-founder Timo Lehes, the launch of Open dOTC addresses the need for more accessible trading platforms for tokenized assets. He emphasized the importance of providing users with a choice in how they trade and access assets, especially as the crypto market evolves with both regulated and non-regulated offerings.

Swarm’s three-year engagement with European regulators has given it a head start in readiness for the forthcoming MiCA regulation, as pointed out by co-founder Philipp Pieper. The company is committed to maintaining its permissioned platform alongside Open dOTC, ensuring users have the option to operate within a regulated, decentralised environment.

The Open dOTC platform will implement a fixed 0.25% trading fee, with the proceeds used to purchase and burn Swarm’s ERC-20 token $SMT, which is likely to impact its value. Currently, $SMT trades around $0.31, and over $8.3 million worth of assets are locked on the Swarm Protocol.

Source: Swarm

Frequently Asked Questions

What is Open dOTC?

Open dOTC is a permissionless real-world assets (RWAs) trading platform developed by Swarm, a BaFin-regulated decentralised finance (DeFi) platform. It operates as a decentralised public goods service built on the Ethereum blockchain.

What assets are available on Open dOTC?

Traders can access tokenized US Treasury bond ETFs on Open dOTC, and the platform plans to add tokenized stocks of publicly-traded companies such as Apple and Tesla in the future. Users also have the option to add and trade any assets currently available on SwarmX.

How does Open dOTC impact Swarm’s permissioned platform?

While introducing Open dOTC, Swarm continues to run its permissioned platform to cater to users who prefer a regulated, decentralised environment for trading.

What is the trading fee for transactions on Open dOTC?

Open dOTC imposes a fixed 0.25% trading fee on transactions. The proceeds from this fee are used to purchase and burn Swarm’s ERC-20 token $SMT, which may impact the token’s value.

How does Open dOTC align with regulatory developments?

Swarm’s engagement with European regulators over three years has positioned it well for the upcoming MiCA regulation, and the company aims to complement its regulated activities with Open dOTC, catering to the growing demand for permissionless infrastructure.


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