Wednesday, June 19, 2024

New Data Shows Sell Out Demand for Tokenized Real-World Assets

Swarm, a regulated blockchain platform, has released trading activity data for the first month since launching tokenized public stocks and bond ETFs on February 24th, showing an 11% rise in platform users and three product sell outs.

The decentralized platform, which offers investors tokenized Apple and Tesla stocks, as well as iShares US treasury bond 0-1 year ETF and iShares US treasury bond 1-3 year ETF, has seen significant interest for their tokenized real-world assets. During the first month of trading, Swarm experienced almost 7% more growth than it had experienced in the 6 months prior. 

Alongside the increase in sign ups was strong demand for the assets themselves. The platform purchases stocks and bonds from a traditional German broker to sell tokenized versions to investors. In the first month, Swarm purchased modest amounts of each asset whilst it builds liquidity on the platform. 

Throughout the first month, Swarm sold out of products on three separate occasions, with iShares US treasury bond 1-3 year ETF selling out on the first day of trading February 24th, Tesla stocks selling out on February 28th and Apple stocks selling out on March 13th. 

Diving deeper into trading activity, the total value of securities traded throughout the first month was $79,433, with each product generating a good start to sales – $33,679 for iShares US treasury bond 1-3 year ETF, $17,221 for iShares US treasury bond 0-1 year ETF, $15,766 for Tesla and $12,767 for Apple.

Timo Lehes, Co-Founder and Managing Director of Swarm, said: “We knew that there was significant demand for stocks and bond ETFs from our community and beyond, but the response we’ve seen over the last month has exceeded our expectations. We have received a significant volume of inbound requests from institutions needing to use tokenized securities to solve collateral and treasury problems. Others have enquired about tokenizing other asset classes, all of which is testament to the need for solutions like this.”

Philipp Pieper, Co-Founder and CEO of Swarm, continued: “This launch is only the beginning. We plan on adding many more trading options to the platform, including new assets and liquidity pools that will promote 24/7 trading hours and instant settlement. We believe that the tokenization of real world assets is a crucial step in fusing the best of DeFi and TradFi and Swarm is at the forefront of this innovation during a pivotal time for the crypto space.”

Swarm values transparency and investor protection above all else, and as such are providing monthly disclosures to provide assurance that the amount of underlying assets held in custody are in line with the amount of Stock Certificate Tokens in circulation on the blockchain each month. All disclosures are publicly available on the SwarmX docs page, the issuing entity for tokenized security tokens.

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