World’s First Regulated DeFi Firm Readies DEX Launch

World's First Regulated DeFi Firm Readies DEX Launch

Share this article

Swarm Markets has obtained a license from German financial regulator BaFin. 

Swarm Markets Prepares to Launch

Swarm Markets, which claims to be the world’s first fully regulated DeFi protocol, has started onboarding capital to its launch liquidity program, the company announced Thursday. 

Swarm Markets provides the first fully-licensed DeFi protocol, consisting of an automated market maker (AMM) and decentralized exchange (DEX) on the Ethereum blockchain.

Swarm Markets has obtained several regulatory licenses to comply with German financial law. Most notably, the company holds a crypto custody license issued by the regulatory authority BaFin. Swarm Markets is not the first company to obtain such a license. Last week, Coinbase made headlines when it was approved by German regulators. 


The legal clarity on crypto assets is precisely why the company’s co-founders Philipp Pieper and Timo Lehes say they moved from the U.S to Germany. Commenting on the emergence of DeFi, Pieper said: 

“It became evident that DeFi was not just a gimmicky play for crypto insiders, and there was real novelty in shared liquidity and protocol-based lending. It gained more credibility with institutions by the month, and regulators also saw it as a winning proposition.”

All liquidity providers on Swarm Markets will need to meet know-your-customer (KYC) requirements to comply with the new regulation. 

Despite the regulatory go-ahead, the company is still cautious. At first, it will only offer pools for major tokens such as Bitcoin, Ethereum, and DAI. 

However, the company has a much grander vision for the future. The end goal for Swarm is to combine traditional financial assets with the power of DeFi applications. Doing so would allow for gold NFTs or gold/BTC trading pairs in a unified market structure. 

Disclosure: At the time of writing, the author of this feature owned BTC and ETH. 

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Coinbase Approved to Offer Crypto Custody in Germany

Coinbase has become the first company to receive a crypto custody license to operate in Germany.  Coinbase Embraces German Regulation Coinbase has been approved for a crypto custody license in…

Exodus: China’s Bitcoin Miners Relocate Amid Regulatory Crackdow…

Publicly-listed Bitcoin mining firm BIT Mining is one of many operations moving overseas due to the ban imposed by the Chinese government. Another Chinese province pulls the plug on Bitcoin…

Japanese Regulator Issues Warning to Binance

Japan’s Financial Services Agency has issued a warning against Binance for operating in the country without a license. Binance On Japanese Regulator’s Radar Japan’s Financial Services Agency (FSA) has published a…

What is Polygon (MATIC): Ethereum’s Internet of Blockchains

In terms of both decentralized app (DApp) development and adoption, no blockchain has been more successful than Ethereum (ETH). But despite its relative success, the Ethereum network still contains several…

Source link


Be the first to comment

Leave a Reply

Your email address will not be published.