German fintech launches platform for tokenized real assets

Tokenized government bonds, stocks and ETFs on the Ethereum Blockchain: that's the promise of Germany's DeFi Swarm.

The Berlin-based DeFi Swarm has launched a trading platform for tokenized real-world assets (RWA) called "Open dOTC."

The Ethereum-based platform uses decentralized over-the-counter (dOTC) smart contracts to prevent slippage, guarantee instant settlement and minimize credit and counterparty risks through full collateralization.

Swarm offers tokenized U.S. government bond at launch ETFs to. The BaFin-regulated company also plans to add publicly traded stocks such as Apple and Tesla.

"The introduction of token assets has been hampered by the lack of viable platforms," he said. told Timo Lehes, co-founder of Swarm, to The Block.

Many financial service providers, including even the U.S. Federal Reserve, are working on tokenization.

Indeed, BlackRock CEO Larry Fink believes tokenization is the biggest trend in the financial sector.