- Swarm Markets, a German real-world asset (RWA) tokenization platform, will allow users to purchase NFTs, which stand for gold ownership.
- Through the decentralized platform of Swarm, users will be able to exchange NFTs peer-to-peer after clearing AML and KYC procedures.
One platform for real-world assets (RWAs) sees a method to supply an asset-backed token with just over a week left before the EU’s Markets in Crypto-Assets Regulation (MiCA) stablecoin laws go into effect: creating a gold-backed NFT.
Berlin-based Swarm Markets intends to allow anyone to purchase NFTs that represent ownership of physical gold. The gold bars that support the tokenized assets will be stored in a Brink’s vault located in London.
After completing know-your-customer (KYC) and anti-money laundering (AML) procedures, users will be able to exchange the NFTs peer-to-peer via Swarm’s decentralized over-the-counter (dOTC) platform.
According to Swarm Co-Founder Timo Lehes, “We believe that NFT innovation has been overlooked because of the hype cycle witnessed in the last crypto bull run,” he said. Although NFTs have the ability to onboard billions of dollars’ worth of real and tangible assets into blockchain, many mistake them for monkey-based JPEGs that were sold for millions of dollars.
Token owners can take advantage of the value and liquidity of TradFi while still enjoying the fluidity of DeFi thanks to NFTs, which offer unparalleled levels of transparency. Tokenized gold is merely the beginning of Swarm’s plan to increase the universe of assets on chain.
According to Lehes, market players should anticipate more from Swarm in the areas of basic metals and presently unregulated markets, such as carbon credits.
According to the company website, Swarm has over $14.6 million in total value locked on its system. The site sells US Treasury bonds and tokenized public company equities in addition to gold.
MiCA regulations
Swarm claims that its tokenized gold will not be subject to the upcoming Markets in Crypto-Assets Regulation (MiCA) regulation because, as stated in the official MiCA text, this regulation should not apply to crypto-assets that are distinct and not fungible with other crypto-assets, such as digital art and collectibles.
In order to control the digital asset market and outlaw the money laundering that goes along with it, the European Union initially passed MiCA in the middle of 2023. By the end of 2024, MiCA will be fully implemented.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
