Swarm Markets, an open platform Creation and management of blockchain assets, Today announced that it will cooperate with the German bank Volksbank Mittweida to develop its first digital security product. The first registered bond (Namensschuldverschreibung) will be issued on the Polygon chain with a total of 1 million euros and sold directly to its retail customers by Volksbank.
Swarm Markets dominates among competitors responding to RFP, digitizing bonds for one of the world’s most respected cooperative banks, meeting technical and regulatory requirements, and meeting Volksbank’s business needs. In this case, compared with Ethereum’s Proof-of-Work (PoW) blockchain, Polygon is used to reduce the energy burden of assets, thereby aligning with the sustainable development goals.
Bonds will be issued using the SRC20 Securities Token Agreement (Swarm Powered Fundraise uses SRC20 to perform regulatory-compliant fundraising for securities tokens) and managed through the MySwarm application. These two applications were originally developed by Swarm Network DAO and used by Swarm Markets’ newly adapted smart contract is used in the polygon chain.
These bonds represent an important first use case, demonstrating that the licensing status of Swarm Markets-operating under the authorization of the German Federal Financial Supervisory Authority (BaFin)-provides a unique ability to remove the institution’s DeFi barriers.
Swarm Markets is using these license creation tools to enable traditional financial institutions to operate in the digital asset market and solve real-world problems. Almost all bonds in the traditional financial industry are registered bonds: the bondholder’s information is recorded; such as corporate bonds, government bonds, or municipal bonds.
This partnership is an opportunity for Volksbank’s investment banking institutions and their customers to become familiar with blockchain financial instruments. It uses simple asset classes and allows users to further explore other functions embedded in digital assets.
“Both parties regard the bond digitalization partnership as a starting point, and opportunities for building new (DeFi) products around new assets will emerge from this. In just over 6 months after Swarm Markets’ first public statement, we have already The asset has established a strong technical infrastructure and is supported by the world’s first regulatory framework, which now carries its first digital asset based on a trust structure, with a global banking giant. We are proud to be In such a short period of time to deliver on our promises, we look forward to seeing where innovations and partnerships like this will take us in the future.”
– The swarm team