10 October 2024: Real-world assets platform Swarm Markets has launched commodity tokens which will allow investors to bundle together NFTs into tradable tokens.
The fully decentralized NFT-bundling platform will allow users to autonomously fractionalize real-world assets (RWAs) via smart contracts, into fungible xGold tokens, which can then be traded on Swarm’s dOTC platform or via Uniswap. Users will receive incentives for bundling NFTs in $SMT – Swarm’s native token.
Starting with gold, commodity tokens deepen the DeFi integration possibilities for users, enabling them to put their assets to use on-chain, opening up lending and collateral opportunities, as well as enabling fractional gold purchasing. They are also a first step toward enabling the creation of structured on-chain products including tokenized gold.
Gold has experienced a significant bull run this year thanks to rising geopolitical uncertainty and anticipation of central bank rate cuts, achieving new all-time-highs on several occasions in the past 12 months.
Timo Lehes, co-founder of Swarm Markets, comments:
“Swarm is dedicated to creating ways for DeFi users to adopt innovative and autonomous solutions for ownership and exchanging real world assets (RWAs) on chain. After introducing Tbills and stocks, tokenized gold was a major step in broadening the scope of what users can hold on chain.
“The introduction of bundled NFT commodity tokens enhances this even further and presents investors with otherwise inaccessible opportunities on chain. It opens up the possibility for users to autonomously collateralize their RWA NFTs and deepens the DeFi integration opportunities at a time when tokenization is revolutionizing the RWA market.
“Gold as an asset is arguably in one of the most important phases of the modern era as investors flock to the precious metal in times of uncertainty. But it suffers from old-fashioned problems of storage, custody transparency, exchangeability and high barriers to entry that inhibit its efficiency as an asset.
“Equally the community on-chain are demanding better forms of collateral for DeFi-based activities. We need to start with the basics and that’s trusted and verifiable data on chain pertaining to real assets that sit off chain. That’s where we believe Swarm’s approach adds real value to the DeFi ecosystem, expanding the asset universe that’s available.
“Enabling investors to autonomously bundle RWAs such as gold for collateralization or buy commodities at lower entry points through fractionalized purchases is a big step in broadening access and enhancing the functionality of the on-chain RWA market.”
Bundle tokens will incorporate native NFTs from and be traded on multiple chains. For example, a bundle token could have a gold NFT on ethereum, bundled into an eth bundle, and be bridged and traded on BASE or Aribitrum, for example. And vice versa. This gives users increased blockchain optionality.
Swarm’s xGold commodity tokens have launched on Ethereum for Ethereum-based NFTs and this will be extended to other chains in the near future.
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