Roadmap 2023: bringing blockchain-based trading to traditional finance

Blockchain has long been hailed as a revolutionary technology. So far, it has only been linked to volatile crypto assets like bitcoin and now associated with the $8bn demise of FTX. 

This presents both a challenge and an opportunity for Swarm; a challenge because it tarnishes the reputation of blockchain-associated businesses; an opportunity because it highlights the need for a different approach to blockchain, regulation and decentralized finance.

Swarm offers investors a way to issue and trade traditional assets, such as stocks and bonds, in a novel, blockchain based way. We are regulated, so investors can trust our platform. And we use decentralized architecture, which offers investors transparency over where their assets are, making them more secure.

In effect, we offer our customers a hybrid model, embracing the advantages of blockchain-based trading, such as flexibility, speed and 24/7 risk management, with the trust and asset range typically enjoyed by traditional exchanges.

Our regulated DEX, launched in October 2021, proved that regulated decentralized architecture can work – not only to the traditional financial community and regulators but to the crypto market, more widely.

In 2022, Swarm:

  • launched on Polygon, making Swarm the first regulated AMM on the layer 2 network
  • integrated with SumSub to provide a more user-friendly onboarding experience
  • announced SX1155 token standard enabling asset owners to onboard real world assets through an NFT construct (currently being used by Germany’s oldest bank Volksbank to tokenize gold for retail customers)
  • launched liquid staking derivatives in five of the top proof-of-stake networks
  • developed our ‘know-your-business’ process so that institutions can onboard more seamlessly and access Swarm’s infrastructure
  • developed smart order router, allowing users to slipt orders across multiple pools, giving them better value and fee savings
  • launched the Swarm Asset Manager app for token issuers and related parties, enabling owners to digitize their assets, connect them with ‘know-your-asset’ (KYA) data and manage their tokens in one dashboard.

Swarm’s architecture is novel. Not only does everything we build use the transparency of smart contracts, so is decentralized by nature, but it is also regulated by BaFin in Germany. Whilst timelines are subject to regulatory approval, in 2023 we are planning to:

Q1

  • Expand our trust and data capabilities to connect real-world assets to DeFi, including on-demand abilities within the KYA process and real-time proof-of-asset capabilities so that token holders can verify where the underlying assets are at any time.
  • Tokenize the first set of traditional securities – this will be a world first and significantly expand the value held on chain as well as the types of assets available to trade. These tokens will enable crypto holders to invest in yield-bearing financial instruments from the traditional world without moving out of the blockchain ecosystem.

Q2

  • Launch NFT bundles, enabling users to structure their own financial products based on their needs. Bundling will be enforced by verified data elements embedded into the NFTs.
  • Smart pools – this will allow for regular indexing and rebalancing, which is particularly critical for the development of index products. Index products will be an important tool for securitising crypto-native products so that institutions can access them.

Q3

  • Launch institutional-grade managed wallet solution, which will be an optional enhancement of interacting with the Swarm infrastructure. Managed wallets can simplify platform interaction for users who either lack the requisite knowledge to effectively manage their own wallet or require a managed solution for automation purpopses.
Q1
Q2
Q3
Expand our trust and data capabilities to connect real-world assets to DeFi, including on-demand abilities within the KYA process and real-time proof-of-asset capabilities so that token holders can verify where the underlying assets are at any time.

Tokenize the first set of traditional securities – this will be a world first and significantly expand the value held on chain as well as the types of assets available to trade. These tokens will enable crypto holders to invest in yield-bearing financial instruments from the traditional world without moving out of the blockchain ecosystem.
Launch NFT bundles, enabling users to structure their own financial products based on their needs. Bundling will be enforced by verified data elements embedded into the NFTs.

Smart pools – this will allow for regular indexing and rebalancing, which is particularly critical for the development of index products. Index products will be an important tool for securitising crypto-native products so that institutions can access them.
Launch institutional-grade managed wallet solution, which will be an optional enhancement of interacting with the Swarm infrastructure. Managed wallets can simplify platform interaction for users who either lack the requisite knowledge to effectively manage their own wallet or require a managed solution for automation purpopses.
Expand our trust and data capabilities to connect real-world assets to DeFi, including on-demand abilities within the KYA process and real-time proof-of-asset capabilities so that token holders can verify where the underlying assets are at any time.

Tokenize the first set of traditional securities – this will be a world first and significantly expand the value held on chain as well as the types of assets available to trade. These tokens will enable crypto holders to invest in yield-bearing financial instruments from the traditional world without moving out of the blockchain ecosystem.
Q1
Launch NFT bundles, enabling users to structure their own financial products based on their needs. Bundling will be enforced by verified data elements embedded into the NFTs.
Q2
Launch institutional-grade managed wallet solution, which will be an optional enhancement of interacting with the Swarm infrastructure. Managed wallets can simplify platform interaction for users who either lack the requisite knowledge to effectively manage their own wallet or require a managed solution for automation purpopses.
Q3

In the context of the perils of centralized entities, rising interest rates and the use of technology on a wider scale, Swarm is the blockchain platform that will bring blockchain-based solutions to traditional finance, transforming the way assets are digitized and traded. 

The exciting thing about blockchain is all of its use cases are still unknown. Just like with the advent of internet technology, we did not know back then that people would spend their lives on social media, email and online shopping. Similarly with blockchain, the possibilities really are endless. Swarm, through its regulated decentralized infrastructure, is primed to take advantage of this evolution.