Swarm (SMT)

Tokenization and Trading

Swarm enables users to tokenize and trade real-world assets (RWAs) like stocks, real estate, gold, and other securities on the blockchain. This allows investors to access unique financial products and trade both crypto and tokenized assets in one place.

DeFi Infrastructure

Swarm provides decentralized finance (DeFi) tools that let users invest, trade, and earn yield on both cryptocurrencies and tokenized real-world assets. It supports a compliant and regulated environment, making it accessible to retail investors and institutions like banks and hedge funds.

Asset-Backed Tokens

All assets on Swarm are 100% backed by real-world value, ensuring that tokens represent actual ownership or claims on physical or financial assets.

Platform Utility

Swarm’s native token (SMT) is used for paying platform fees, rewarding liquidity providers, and aligning interests of stakeholders within the ecosystem.

Accessibility and Compliance

Swarm lowers barriers to investing in traditional financial assets by combining blockchain technology with regulatory compliance, enabling secure and cost-effective trading of security tokens.

Ecosystem Support

Swarm supports a growing ecosystem of decentralized applications and projects that build on its platform, expanding use cases beyond just trading to include data storage, privacy, and more.

For more details, visit Swarm's official website.

Pros of Swarm

• Enables tokenization and trading of real-world assets (stocks, bonds, commodities) alongside cryptocurrencies.
• Combines traditional finance with DeFi, offering a regulated and compliant platform.
• Supports peer-to-peer transactions with autonomous smart contracts.
• Provides access to unique financial products and wealth-building tools.
• Offers liquidity solutions and multi-asset trading pools.
• Regulatory approval in some jurisdictions (e.g., Germany’s BaFin) adds trust.
• Hybrid model blends blockchain speed and efficiency with traditional market trust.
• Supports institutional and retail investors with business accounts and compliance layers.

Cons of Swarm

• Liquidity in tokenized real-world assets markets can be lower compared to traditional markets.
• Regulatory restrictions limit availability in some regions (e.g., U.S. and Canada).
• Change and adoption in traditional finance are slower compared to crypto innovation.
• Complexity of compliance and regulatory environment may pose barriers for some users.
• Market adoption depends on bridging gaps between traditional finance and DeFi, which is still evolving.

For more details, visit Swarm's official website.

Founders of Swarm

• Philipp Pieper: Co-founder and CEO, experienced in decentralized technologies and crypto-asset trading since 2015.
• Joel Dietz: Co-founder, known for re-imagining crypto-investing and involved in early smart contract projects.
• Timo Lehes: Co-founder, fintech expert with experience managing large portfolios and shaping regulated fundraising platforms.

These three individuals are recognized as the main founders behind Swarm.

Institutional Investors

Swarm attracts institutional investors such as banks, hedge funds, broker-dealers, and asset managers. These investors use Swarm’s platform to trade tokenized real-world assets and securities alongside cryptocurrencies.

Retail Investors

Retail investors can also participate on Swarm’s platform, gaining access to tokenized assets like stocks, gold, real estate, and more. Swarm aims to open new investment opportunities for individual investors.

Accredited Investors

Swarm offers security tokens representing equity in private companies like Coinbase, Robinhood, and Ripple. These tokens are available mainly to accredited investors who complete identity verification (KYC/AML).

Founders and Early Backers

Swarm was founded by Joel Dietz, Philipp Pieper, and Timo Lehes, who are also active investors and entrepreneurs in the blockchain and crypto space.

Partners and Collaborators

Swarm partners with regulated entities and platforms, such as Meld (a licensed crypto bank in the EU), to expand access and liquidity for its tokenized assets.

For more details, visit swarm.com.

Halal Status of Swarm

• Yes, Swarm can be considered halal because it is a platform that tokenizes real-world assets and operates with regulatory compliance, which aligns with Islamic finance principles.
• It focuses on asset-backed tokens and regulated trading, avoiding elements like interest (riba) and excessive uncertainty (gharar).
• However, the final decision depends on individual interpretation and consultation with a qualified Islamic scholar.