Swarm Markets, a platform based in Berlin, has launched fully asset-backed digital gold represented by non-fungible tokens (NFTs).

The real-world assets (RWA) platform announced it will allow investors to hold and trade gold in a digital format, with each NFT representing ownership of physical gold bars stored in secure vaults.

Each NFT corresponds to a specific gold bar, with unique identifiers that verify ownership. The physical gold will be stored by Brink’s, a security and logistics firm, in their London vaults.

Amazon Web Services for Gold

“We’re creating the Amazon web services of gold on the chain,” said Philipp Pieper, co-founder of Swarm Markets,

“Not only will investors have unique identifiers for their NFT, linking them to a specific gold bar or ounce, but they can own and custody their gold holdings digitally via blockchain, redeem it for the physical underlying collateral and choose where to store their physical gold,” said Pieper.

MiCA Compliant Product?

This launch comes ahead of regulatory changes in Europe under the Markets in Crypto-Assets Regulation (MiCA) set to take effect on July 1.

The MiCA rules introduce stringent requirements for asset-referenced tokens, including those based on gold. However, NFTs, being unique and non-fungible, fall outside the purview of these new regulations.

“We’ve also ensured the product is compliant with MiCAR asset-reference token rules to give investors maximum confidence,” said Pieper.

Tokens Traded on the Swarm Platform

One of the standout features of Swarm’s digital gold NFTs is their tradability and peer-to-peer transaction capability.

Investors can trade the tokens on Swarm Markets’ platform or other compatible marketplaces, enabling liquidity and market engagement that traditional gold investments.

The transfer and trade will be facilitated through blockchain technology. Token holders have the option to redeem their NFTs for the underlying physical gold.

This process involves undergoing Know Your Customer (KYC) and Anti-Money Laundering (AML) checks to ensure compliance with legal standards.

Once verified, investors can choose the jurisdiction where their gold is stored, adding a layer of customization and control over their investment.

Swarm is jumping on a growing trend involving asset-backed digital tokens.

Source : Cryptonews - Jun 26, 2024