German DeFi platform Swarm will launch P2P trading of gold NFTs
Date: 2024-06-26 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Launch of P2P trading of gold NFTs
German real-world asset (RWA) tokenization platform Swarm Markets has announced the launch of trading in non-fungible tokens (NFTs) representing the ownership of gold. Users will be able to trade these NFTs on a decentralized over-the-counter (dOTC) platform in a P2P format after undergoing identification and anti-money laundering (KYC/AML) compliance procedures.
The gold bars backing the NFT are held in a London-based vault by custodial and shipping company Brink's. Swarm co-founder Timo Lehes emphasized that these NFTs will provide owners with an unprecedented level of transparency, which is unique to this market.
Flexibility and liquidity
This initiative allows users to benefit from the flexibility of DeFi tools while leveraging the value and liquidity of assets from the traditional finance sector. Leches noted that the innovative potential of NFTs was underestimated in the previous bull cycle due to the hype around digital art and collectibles.
Swarm plans to expand its offering of tokenized goods by adding base metals and carbon credits. The platform also offers tokenized shares of public companies and US Treasuries, allowing users to access a variety of financial instruments.
Regulatory aspects
Swarm claims that its gold NFTs are not subject to the Markets in Crypto-Assets Act (MiCA), which will come into force in the EU by the end of the year. The law does not apply to unique, non-fungible crypto assets, including digital art and collectibles.
With the launch of P2P gold NFT trading, Swarm Markets is demonstrating its innovative approach to integrating traditional financial assets with cutting-edge DeFi technologies, providing users with new investment and trading opportunities.
