The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended or with any other regulatory authority of any State or other jurisdiction of the United States or Canada and (i) may not be offered, sold or delivered within the United States or Canada, or to, or for the account or benefit of any U.S. Person or Canadian, and (ii) may be offered, sold or otherwise delivered at any time only to transferees that are Non-United States Persons and Non-Canadians.

July 5, 2022


Welcome to Swarm Markets’ media memo. This weekly update provides comments from Swarm Markets’ co-founders, Philipp Pieper and Timo Lehes, on key industry news that has caught our eye, plus our own developments. 

Comments available on the following news items:

  • It’s time to start putting real-world assets on DeFi
  • ECB crypto warning
  • Colombia to launch blockchain land registry

Time for real-world assets to join DeFi – Timo Lehes

DeFi has suffered some high-profile issues in the past few weeks and the ‘crypto winter’ narrative that is prevailing is not making life easier for the sector. But something critical needs to happen to the space that will be a gamer changer – it’s time to start onboarding real world assets (RWAs) to the blockchain. 

This is an essential way for DeFi to reevaluate its value proposition in a period of market distress. The sector needs to figure out, ultimately, why it is creating the infrastructure that is now in place in order to shift mindset from short-term speculation to long term investment. RWAs are the clear answer to that. 

Doing so will simultaneously defuse the volatility and speculative issues of the market, while opening up the utility of DeFi innovations to the real world. No longer will it be a game of tokens, instead it will mean real tangible assets such as company stocks, debt assets and even real estate will be able to exist, with a track record of ownership, on open, secure and transparent blockchain. 

Swarm is regulated by BaFin in Germany. We are already deploying DeFi innovation within a regulatory setting so that more assets and participants can enter the ecosystem, redefining DeFi’s value proposition. The current state of crypto should be a clarion call to the industry now to make the next step for the future of the sector. 

ECB fires a crypto warning shot, again – Philipp Pieper

The European Central Bank isn’t short of views on crypto at the moment. And with the timing of the MiCa bill, which received its approval last week, this is no surprise.

Regulatory scrutiny of crypto should come as no surprise. But it should also not be something to be afraid of. Of course, there are limits where the industry sees as regulators overstepping their mark, but regulation is a natural progression for a burgeoning sector and should not be resisted, rather received and responded to constructively. 

The ECB, which is raising the need for harmonisation, has a fair point to make. We’re looking at a mishmash of different legal styles, codes and practices which make compliance harder for firms, and more difficult for consumers to understand.

Swarm would encourage regulators to look at positive examples where rules have been applied to encourage as well as protect. We think Germany’s BaFin, which regulates Swarm, has a good balance in this regard, and would urge harmonisation to look to aim for this balance. 

Colombia launching XRP Ledger land registry – Timo Lehes

South American nation Colombia is looking to launch a national land registry using Ripple’s XRP ledger, which could provide a fascinating case study of real world uses for traditional assets. 

The country’s national land agency will use the XRP Stamp to verify digital records and store information on blockchain. The project has fascinating potential implications for ownership records and goes some way to realising the potential of digitally verifiable assets held on the blockchain.

Of course, what is missing for now from the project is a transaction-based infrastructure that will allow Colombians to buy and sell those recorded assets using crypto technology. But crypto is still a jigsaw of emerging projects. We expect this will come in time to other countries and will be a revolutionary step for the ownership and exchange of assets of all kinds.