Swarm Enables Compliant Stocks on Hedera

15 August 2025 — Hedera Foundation today announced a strategic collaboration with Swarm, a real-world asset (RWA) protocol, to launch tokenized stocks on Hedera Network. With this launch, equities like Apple, Tesla, and MicroStrategy will be made available on-chain, which are backed 1:1, insolvency-protected, DeFi-compatible and accessible to both retail and institutional investors. Issued under Swarm’s approved EU Prospectus Regulation, this marks a major step in bridging traditional finance with decentralized finance.

Through this collaboration, Hedera users can leverage a redemption pool, enabling instant redemptions of tokenized stocks, bypassing the traditional market’s T+2 settlement delay. This is made possible by Swarm’s automated infrastructure for bringing securities on-chain, where a smart contract on Hedera can trigger a buy or sell order in traditional markets in real time during market hours. Once executed, the fiat value of the underlying collateral is delivered back to the user in stablecoins, directly on chain.

The redemption pool offers a far more efficient and less capital-intensive solution for exit liquidity on tokenized stocks than current AMM-based models. Rather than relying on inflated on-chain TVL to absorb redemptions, this model draws liquidity from traditional markets, ensuring capital efficiency while maintaining real, on-demand liquidity for users.

This approach prioritises utility and user experience, giving Hedera users confidence that their tokenized assets can move freely and easily between blockchain and traditional financial rails.

Hania Othman, Director of Financial Markets and Sustainability at The Hedera Foundation, said: "We chose to work with Swarm because of their regulatory credibility and technical readiness to make tokenized stocks usable across DeFi. 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.”

This integration will unlock sophisticated financial applications across the Hedera ecosystem. The tokenized assets enable new use cases, including DAO treasury management, on-chain lending strategies, and advanced collateralization structures, driving deeper utility and adoption for both institutional and community players.

Philipp Pieper, co-founder of Swarm, said, “Tokenized assets need more than just blockchain infrastructure; they need real usability and trust. By combining Hedera’s performant, EVM-compatible network with our compliant tokenization platform, we’re enabling a new model for accessing global markets directly from your wallet.”

Swarm is currently building smart contract automation for issuance and redemption, allowing users to trigger traditional market buy and sell orders entirely from smart contracts. This approach bridges Hedera users to virtually unlimited off-chain market depth while maintaining the benefits of decentralized access.

Philipp added: “Automation is critical because it allows tokenized equities to tap into off-chain liquidity without needing to build up large on-chain TVL first. Liquidity is the hardest part of launching any new product, and by structuring redemption and issuance via smart contracts, we make traditional market depth usable on-chain from day one.”

As part of its broader mission, Hedera is building the financial infrastructure for a multi-chain, real-world economy. With live deployments already underway, this initiative will help unlock secondary trading, lending environments, and further DeFi integration for tokenized equities on Hedera. Swarm’s end-to-end infrastructure for bringing securities on chain enables RWAs on a variety of blockchain networks, including solutions for issuance, trading and proof-of-reserves.

Ends

About Hedera Network

Hedera is the most used, sustainable enterprise-grade public ledger for the decentralized economy. Powered by its unique hashgraph consensus mechanism, Hedera delivers high throughput, low latency, and predictable fees—making it ideal for real-world applications across industries. With a focus on regulatory compliance, performance, and security, Hedera enables developers and organizations to build decentralized applications that are fast, fair, and green. Governed by a global council of leading organizations, Hedera is designed to meet the needs of both enterprise and Web3 ecosystems. https://hedera.com/

About Hedera Foundation

Hedera Foundation accelerates the development, impact and adoption of the Hedera network. The Foundation provides grants, subject matter expertise, and ecosystem support to help developers build applications across tokenization, DeFi, AI, and sustainability sectors. The team spans engineering, marketing, business development, and finance to empower entrepreneurs and organizations to innovate on the Hedera network.

About Swarm

Swarm is an RWA platform that brings unique digitization and trading solutions to the world of traditional finance. It is the first organization in the world to offer digitized US treasury bills and Apple stock via a compliant and decentralized platform. Day to day, we work with real-world asset owners to tokenize collateral and build trading infrastructure in a regulatory-compliant way. Issuers that need compliance guarantees from a top tier jurisdiction to build secondary markets of tokenized securities, including fixed income products, choose to partner Swarm.

Swarm is a hybrid, embracing the advantages of blockchain-trading - flexibility, speed and efficiency - and pairing it with the trust and asset-range typically enjoyed by traditional exchanges. Swarm aims to integrate TradFi with DeFi so that everything becomes "Fi". For more information, visit the website.

Media contact

Hedera: Hannah Noyes, [email protected] Swarm: Katie Evans, [email protected]