By
Mayowa Adebajo
June 18th, 2024
Just days ahead of the implementation of the EU’s MiCA stablecoin regulations, Swarm Markets, an RWA platform, is making a strategic move.
As per the reports, Swarm plans to allow users to purchase NFTs representing ownership of real gold bars stored securely in a Brink’s vault located in London. Users who have passed the know-your-customer (KYC) and anti-money laundering (AML) verification procedures will be able to swap the NFTs on Swarm’s decentralized over-the-counter (dOTC) platform using the peer-to-peer method.
Swarm Markets Bets on Gold-Backed NFTs
Unlike fungible cryptocurrencies, each NFT is unique and can not be directly replaced by another. This means that the proposed offerings could technically be exempted from MiCA‘s upcoming stablecoin rules, as per the official MiCA statement.
Interestingly, though, it is not exactly clear whether Swarm’s plan to offer the gold NFTs is to bypass MiCA stablecoin rules. However, Swarm co-founder Timo Lehes has attempted to share the reason behind the company’s decision. Lehes noted that NFTs have potential that go way beyond just digital artwork as most people choose to see them. Rather, they have the capacity to merge the traditional financial system (TradFi) and Decentralized Finance (DeFi) in untold ways, he added. He told The Block:
“We think that NFT innovation has been overlooked thanks to the hype cycle witnessed in the last crypto bull run.”
Lehes believes that NFTs, while largely underrated, could offer the transparency and liquidity of DeFi and also carry the established value and tradability of traditional assets like gold.
Expansion Plans
Other than the gold offering, it appears that Swarm may have even further plans up its sleeve. According to Lehes, the platform is actively considering expanding to include other commodities like base metals. He also confirmed that foraging into unregulated markets like carbon credits is a big possibility as well.
As of publication, Swarm boasts over $14.6 million locked in its DeFi protocol and offers tokenized versions of public company stocks and US Treasury bonds alongside this innovative gold product.