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.
Tron-based Tokenization To Allow Faster, Cost-Effective Transactions
Moreover, tokenization on Tron will allow users to “complete transactions faster” and in a cost-effective manner, TRON Foundation’s official blog post noted. Commenting on the initiative, Justin Sun, the founder of Tron and CEO of BitTorrent, remarked:
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.
In addition to facilitating the free-of-cost tokenization of assets through a recent partnership with Swarm, TRON’s development team is set to launch a Tron blockchain-based USDT stablecoin.
According to TRON Foundation’s blog, the Tron-powered USDT coin has been developed through a collaborative effort involving Tether Ltd. and Bitfinex, a Hong Kong-headquartered and British Virgin Islands-registered digital asset exchange. Confirming that USDT is backed, or pegged, 1-to-1 with the USD, TRON Foundation’s blog states that the stablecoin can be used in “smart contracts for security tokens that offer a dividend to the holders.”
Using TRX And USDT-TRON To Transact In Security Tokens
Philipp Pieper, the co-founder and CEO of Swarm, noted:
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.
At present, TRON’s developers are also working on creating a layer-two payment and cryptocurrency transaction infrastructure, called the SUN network. The second-layer protocol will be implemented using sidechains and “cross-chain infrastructure.” According to TRON’s development team, the SUN network will enable faster and more cost-effective crypto transfers.