Swiat Secures BaFin Approval and Accelerates Europe’s Digital Securities Infrastructure

Swiat, the blockchain infrastructure software provider founded by the savings bank fund company Deka, is further expanding its presence and network in the digital securities business. The company, in which Deka, LBBW, and Standard Chartered Bank also hold stakes, has now received authorization from BaFin to operate crypto securities registers in accordance with the German Electronic Securities Act (eWpG).

The approval is another important step towards a global ecosystem for the settlement and trading of digital assets, says Swiat CEO Henning Vollbehr. “With the crypto securities register, we are greatly simplifying the process for issuers and financial institutions.”

Swiat is now enabling streamlined issuance, settlement, and trading of tokenized assets across European banks

In this way, institutional partners, such as custodian banks like BayernLB, DZ Bank, or shareholders Deka and LBBW, could now obtain not only all services for issuing digital securities from a single source, but also for their settlement and trading, fulfilling all requirements, particularly regulatory ones. Issuers could thus potentially reach all investors who use these custodian banks.

In September, ten European banks, including ABN Amro and NatWest, joined forces to form a consortium to establish a cooperative that will provide a shared infrastructure for trading digital securities based on Swiat software. Deka hopes this will lay the foundation for an open, pan-European banking solution. To date, trading in digital securities suffers from, among other things, the existence of numerous, often incompatible, isolated solutions.

Furthermore, Swiat has begun a collaboration with BNY to test the management of collateral via a blockchain . Deka, for its part, has founded another consortium together with banks from seven other European countries, which is scheduled to issue a euro stablecoin in the second half of next year.

In the coming years, Swiat expects digital assets to become increasingly important worldwide due to the growing tokenization, i.e., their settlement via the digital infrastructure of blockchain. The fintech company anticipates average annual growth of more than 60 percent in the European market alone by 2030, reaching over three trillion euros.

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(Featured image by TheDigitalArtist via Pixabay)

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