By 
Swarm, a regulated DeFi platform, has unveiled its onboarding API, enabling institutions and enterprises without a know-your-customer (KYC) and anti-money laundering (AML) provider to offer users regulatory-compliant tokenized securities and trading services in accordance with German law.
The onboarding API is specifically designed to cater to partners who lack their own KYC provider. For partners already equipped with a KYC provider, Swarm will soon introduce a KYC Sharing API. This API verifies users’ identities and the source of their funds, a standard process for onboarding users to trade securities on stock brokerage accounts.
Philipp Pieper, co-founder of Swarm, noted, “There is a flight to quality assets on the blockchain. We are seeing interest from crypto and DeFi companies eager to offer various tokenized asset classes to their users but lack the necessary infrastructure. Swarm’s solution eliminates friction and enhances access to tokenized securities by delivering a KYC onboarding process that complies with German regulations.”
Pieper also highlighted the significance of these developments in enhancing the health of the on-chain ecosystem and expanding access for individuals and institutions aiming to mitigate counterparty risk.
The API empowers clients to seamlessly incorporate an onboarding process into their applications, providing users with an enhanced experience. The KYC and AML procedure guides users through an identity verification flow, enabling them to submit required documents and information, and tracks the status of their onboarding. Once verified, users gain permission to interact with Swarm’s tokenized t-bills and publicly traded stocks, such as Apple and Coinbase, on the Polygon network.
Swarm offers two distinct environments for clients:
– Sandbox (Mumbai): Designed for test environment integrations where no actual checks are performed, ideal for testing Swarm’s API. All transactions take place on the Polygon Testnet, Mumbai, free of charge.
– Production (Polygon): For integrations ready to go live, Swarm requires prior testing before providing access to the production environment.
Timo Lehes, co-founder of Swarm, explained, “This year has witnessed significant growth in tokenized securities, but regulatory hurdles limit the ability to offer these to retail investors on many platforms. Swarm’s tokenized assets have a registered prospectus in Liechtenstein, allowing us to make them accessible to retail investors without minimum investment requirements. Consequently, numerous institutions are approaching us with requests to white label our assets and trading infrastructure to provide users with a diversified array of assets on the blockchain.”
Swarm operates as a hybrid platform, combining regulatory compliance with the advantages of decentralization. The platform currently offers 11 tokenized assets, including Apple, Blackrock, Coinbase, Coupang, Intel, Microsoft, Microstrategy, NVIDIA, and Tesla, in addition to two fixed income products, iShares US Treasury Bond 0-1 year and iShares US Treasury Bond 1-3 years.
Users can directly access and trade these assets within AMM pools on app.swarm.com or integrate them into third-party platforms. Swarm’s technology and regulatory framework are adaptable for use in a wide range of financial products.
Comments