Swarm Markets aims to be the world’s first bridge between the crypto and traditional finance sector via a decentralized protocol.
Swarm Markets is a decentralized finance (DeFi) protocol to unify traditional financial markets and crypto. Toward this goal, it has acquired a license from BaFin, Germany’s financial regulator. Swarm Markets traders can access a single platform to trade crypto, asset-backed securities, and other asset classes from the mainstream financial system.
How Swarm Markets Works
Swarm Markets, based in Berlin, provides traders access to the same financial products that Wall Street traders have access to. Additionally, traders have access to all major crypto products. The platform is powered by DeFi protocols to achieve this goal.
Traders on Swarm Market can trade in major cryptocurrencies like Bitcoin and Ethereum via a smart contract that acts as an automated market maker (AMM). Users earn a share of all transactions for acting as liquidity providers. The platform is powered by the SMT Token, which is the native token. SMT Token incentivizes users, such as discounts on transaction fees and bigger rewards for liquidity providers.
The onboarding process is easy; traders can transact up to €5000 with a basic account. After a review process, they can upgrade to unlimited trading. While DeFi platforms offer low fees, they suffer from a lack of liquidity. Swarm Markets aims to greatly boost liquidity in the DeFi sector by providing an easy entry point for mainstream financial traders.
Regulation in Germany
Germany has one of the friendliest regulatory regimes for the crypto sector in the West. BaFin has provided regulatory clarity, which allows firms, including banks, to provide crypto custody services. It is why Swarm co-founders Timo Lehes, and Philipp Pieper, relocated from the US to Germany to create the platform.
In December 2021, Swarm Markets announced it had partnered with Volksbank Mittweida, a regulated German bank, to issue digitized bonds on the Polygon Network. The bond was issued in an aggregate of €1 million and sold to Volksbank’s customers directly.
Products Offered
Today, Swam Markets offers traders access to numerous products on-chain. One of its most prominent products is stocks. In June, the platform announced that traders could invest in seven prominent public stocks with instant settlement. The stocks are Blackrock (BLK), Coinbase (COIN), Coupang (CPNG), Intel (INTC), Microsoft (MSFT), Microstrategy (MSTR), and NVIDIA (NVDA). Traders can also invest in US Treasury Bonds ETF, earning up to 4.5% yield on-chain. Finally, traders can invest in liquid staking tokens for the top five proof of stake networks.
All trading products are issued via SwarmX GmbH, a subsidiary of Swarm Markets GmbH.
SMT Token
The SMT Token is the native token of the Swarm Markets platform. The maximum supply of the tokens is 250 million SMT tokens. Since its launch, it has been performing quite well. Its latest 24-hour trading volume is $17,373.37, according to CoinMarketCap.
The token has a market cap of over 1.8 million, which is quite impressive considering the niche market it occupies. Its 2023 all-time high was market cap was around $2 million, and the token is currently on an upward trend.
[Click The $SMT Chart Above To Trade On DexTools]
Summary
The SMT Token market cap is far from its all-time high of $14 million. With the rising interest in Web3, and DeFi products, coupled with the growing product offering on Swarm Markets, it could break past this point. Those who get in now could make it big, considering the $SMT Token is currently on an upward trajectory.
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