Swarm, a blockchain-based development firm which provides “fee-free tokenization of assets” that generate dividends, has reportedly decided to allow financial service providers with “proper licensing” to launch security tokens on the Tron (TRX) blockchain.
Asset providers who’ve submitted proper documentation related to know-your-customer (KYC) / anti-money laundering (AML) checks will be able to access Swarm’s proprietary software. The company’s software tools have been designed to “make it easier to unlock and capture value” across a wide variety of asset classes.
“Swarm is one of the preeminent builders of digital investment infrastructure and its decision to adopt the TRON blockchain will further our push to make decentralized finance the next big thing for the investment community,” said Justin Sun, founder of TRON and CEO of BitTorrent.
Tether will launch USDT-TRON, a stablecoin based on Tether technology in partnership with Bitfinex. These stablecoins are pegged to the U.S. dollar and can be used in smart contracts for security tokens that offer a dividend to the holders of their respective security tokens. Stablecoins reduce the volatility that cryptocurrency traditionally effects on institutional buyers who are more risk-averse.
“TRON’s dedication to delivering fast, free solutions using decentralized infrastructure make them a natural fit for Swarm’s open tokenization technology. Issuers will be able to offer security tokens on Tron’s blockchain, and will allow investors to use TRX and USDT-TRON to purchase security tokens. This is about meeting people where they are, and opening the door for the massive and engaged TRON community to enter this rapidly growing space.” said Philipp Pieper, co-founder and CEO of Swarm.