Swarm is a Berlin-based RWA platform founded by entrepreneur Timo Lehes, who redefined the world of the non-fungible currency (NFT) market with its brand-new gold-backed product prior to the new European Union MiCA regulation.
Swarm Users Have More Control Over Assets With Gold-Backed NFT, CEO Says
Swarm’s latest venture allows clients to purchase a tangible investment backed by a gold bar that is linked with its own NFT.
The latest initiative of the German firm could offer hope to anyone who wants to manage their wealth more, as the world is increasingly fragile and violent.
“We’re so used to having balances on banks, brokerage accounts, and elsewhere, and we have no control over those assets,” Lehes declared, noting that Swarm provides users with full access to their storage of worth. “Actually bringing things on-chain, you do have the legal right to that underlying asset, and you’re actually controlling the asset through your own wallet.”
We’ve been hinting at this for a while, and now it’s finally time for the reveal…
Imagine holding the oldest and most trusted investment with unmatched transparency, control and flexibility.
Introducing #tokenized gold via NFTs 🧵
Our head of BD @Katieevans251 explains how… pic.twitter.com/KLHxGvTZW2
— Swarm (@SwarmMarkets) June 25, 2024
Interestingly, it is noteworthy that RWA’s RWA platform venture has successfully circumnavigated the European Union’s Market in Crypto-assets Regulation (MiCA), which was due to come into effect July 1 due to its NFT character.
“This Regulation should not apply to crypto-assets that are unique and not fungible with other crypto-assets, including digital art and collectibles,” MiCA states. “The value of such unique and non-fungible crypto-assets is attributable to each crypto-asset’s unique characteristics and the utility it gives to the holder of the token.”
The NFTs are still basically out of the MiCA framework as long as you don’t fractionalize them or make them fungible,” Lehes declared. “The other piece that’s also quite exciting about where MoCA sits right now is it doesn’t define how DeFi fits into the regulatory framework.”
The European stage is set to allow for an even greater level of blockchain innovation. Swarm users are also able to sell their assets through the secondary liquidity platform following the passing of Know-your-Customer (KYC) in addition to Anti-money Laundering (AML) legislation.
“The company’s not only making tokenization possible, but it’s also solving some critical aspects of liquidity,” Lehes explained.
What’s Next For Swarm
As per CoinGecko, the emerging tokenized gold market is estimated at $1.15 billion. Swarm is ahead of competitors in the field by looking at ways to prepare simple-to-use tools for the assets it already has brought onto the chain.
The Swarm team is currently working on a variety of crucial lending platform integrations between DeFi and the RWA space.
“I think that’s the natural step that we’re working on now is how to integrate with many Web3 wallet companies as well as some Web2 companies,” the CEO stated.
