Specifically, the fintech facilitated the issuance of shares in the crypto special fund A-Deka-BlockchainEINS on its blockchain. Deka Investment, one of Germany's fund providers, undertook this transaction, marking the initial implementation of blockchain processes in the fund life cycle.
According to the official press release, some of the main aspects of the fund's operations, such as share certificate processing and fund closure, will be piloted on SWIAT's blockchain, while DekaBank will serve as the depository for this transaction. SWIAT, having previously introduced digital bearer bonds and digitally registered bonds, has now matured another type of security on the blockchain.
In the crypto funds sector, SWIAT tokenizes fund share certificates through blockchain technology. The SWIAT blockchain offers a compliant solution to users such as DekaBank, ensuring adherence to capital market laws, compliance, and regulatory requirements.
By tokenizing fund units, SWIAT progresses towards its goal of establishing a decentralised financial infrastructure. The company aims to collaborate with global financial institutions to set an international standard for digital asset issuance.
In 2024, SWIAT plans to onboard more partners onto its blockchain, expanding the ecosystem's potential applications in the securities business, including real-time settlement and collateral management. Future possibilities include the digital issuance of shares in mutual funds and e-shares.
SWIAT, along with its partners, participates in the European Central Bank's Toolbox Experiment, exploring how financial transactions recorded on blockchain platforms can settle in central bank money. The objective here is to enable institutional investors to initiate real-time delivery versus payment transactions on the SWIAT blockchain, reducing counterparty risks and internal coordination requirements for banks.
In the official press release, representatives from SWIAT highlighted the successful launch of crypto fund units and outlined plans to connect additional partners and solutions in 2024. Officials from Deka Investment talked about the significance of exploring blockchain technology in the fund business and expressed the intention to integrate blockchain in various fund processes.
SWIAT aspires to establish a global standard for processing blockchain-based securities on its platform, emphasising compliance with capital market laws and regulatory requirements during the conception phase. The company anticipates the global importance of digital assets to grow in the coming years, estimating a CAGR of over 60% for an open decentralised financial market in Europe, reaching over EUR 3 trillion by 2030.
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