Unlocking Gold: How Swarm Markets is Revolutionizing P2P Trading with NFT-backed Gold

The world of Web3 and blockchain technologies is rapidly evolving. They are becoming crucial parts of many companies globally and offering unique services to users. Statistics show that the use of cryptocurrency is increasing worldwide: in 2023, the number of cryptocurrency users exceeded 420 million, with the average cryptocurrency ownership rate at 4.2% of the global population.

In today's article, Coinmooner wants to share a joyful event in the crypto industry that will surely delight many crypto enthusiasts worldwide. The German platform Swarm Markets will allow users to own gold through NFTs after completing the KYC/AML process for P2P trading.

Rest assured, the gold bars backing the NFTs are securely stored in a London vault managed by the trusted custodial and transport company Brink's. Swarm co-founder Timo Lehes has emphasized that the NFTs will provide owners with an unprecedented level of transparency, ensuring that your investments are in safe hands.

Real-World Assets Meet DeFi: Swarm Markets' Groundbreaking Gold NFTs

Coinmooner decided to delve deeper into this event in the Web3 industry and learn more about the tokenization of real-world assets (RWA) on the Swarm Markets platform. This platform plans to release NFTs representing ownership rights to gold.

This initiative is believed to allow users to benefit from the flexibility of DeFi tools while utilizing the value and liquidity of assets from the traditional financial sector. According to Timo Lehes, the company's co-founder, the innovative potential of NFTs was overlooked due to the hype around this type of asset in the previous bull cycle. Many equate NFTs solely with JPEG images of apes sold for millions of dollars, whereas in reality, they can be used to transfer tangible real-world assets worth billions of dollars onto the blockchain.

Furthermore, Swarm plans to expand the range of tokenized goods in the future, adding precious metals and entering the carbon credit market. According to information on the company's website, the current total value locked (TVL) of the Swarm protocol exceeds $14.6 million.

Swarm also claims that its gold NFTs do not fall under the scope of the Markets in Crypto-Assets Regulation (MiCA), which will come into effect in the EU by the end of the year. The company clarified that the law's provisions do not apply to unique non-fungible crypto assets, including digital art and collectibles.

CoinMooner will closely monitor developments and quickly let you know of any changes. CoinMooner also reminds our readers that the Web3 industry offers opportunities for earning and legitimate projects and attracts scammers seeking to steal their funds. Therefore, always use the most advanced security measures to minimize the risk of financial loss.