Regulated decentralized finance (DeFi) platform Swarm, which has a total value locked (TVL) of just under $1 million, has partnered with the Hedera Foundation to launch tokenized stocks on Hedera, a Layer 1 blockchain with a TVL of about $130 million.
The rollout enables on-chain access to U.S. equities, including Apple, Tesla, and Strategy (formerly MicroStrategy). The assets are issued under Swarm’s EU Prospectus Regulation approval and are backed 1:1, according to a press release viewed by The Defiant.
A Swarm spokesperson told The Defiant that the products are accessible globally to investors outside the United States and countries under OFAC sanctions, including participants across the European Union (EU).
“This is a major differentiator from most [real-world asset] offerings that remain limited to accredited or professional investors,” the spokesperson said. In the U.S., accredited investors are typically defined by the U.S. Securities and Exchange Commission (SEC) as individuals who meet certain financial thresholds, like having over $200,000 in annual income.
‘DeFi-Integrated’
Unlike centralized brokerages, which hold customer assets and operate within set market hours, Swarm’s tokenized stocks trade directly on-chain, can settle in stablecoins, and are available 24/7. They are also “DeFi-integrated,” meaning they can be used as collateral, in lending, or other on-chain financial strategies, the spokesperson explained.
Notably, the launch features a redemption pool that lets users cash out of tokenized stocks on-chain right away, instead of waiting the typical two days for settlement. “The redemption pool mechanism is a novel user-centric solution that creates true exit liquidity, and we’re proud to be the first to support it as part of our strategy to bring real volume and utility to the Hedera network,” said Hania Othman, Director of Financial Markets and Sustainability at The Hedera Foundation, per the release.
Swarm told The Defiant it plans to expand DeFi-based lending and other composable products for the assets in the future.
The partnership comes as tokenized stocks continue to gain momentum in both DeFi and centralized finance (CeFi).
In May, centralized exchange Kraken revealed plans to launch tokenized U.S. stocks for investors outside the U.S. via the xStocks platform. In June, Gemini partnered with Dinari to offer tokenized Strategy (MSTR) stock to European users, with additional tokenized stocks and ETFs expected soon. Robinhood has also announced it will offer more than 200 tokenized U.S. stocks to users in Europe, with plans to expand to 2,000 by the end of 2025.
This momentum reflects broader growth in tokenized real-world assets (RWAs), with the total on-chain value of the sector rising 63% since January to over $26 billion, according to RWA.xyz.
