The Swarm community can now reserve their stake in Robinhood with Swarm’s first release of many promised SRC-20 tokens representing private equity in individual tech companies - RHET (Robinhood Equity Token). Robinhood, whose worth is estimated at $5.8 billion, is a mega stock-trading company that, similarly to Swarm, makes investment opportunities more accessible for everyone with the shared concept of democratizing finance.
Swarm, a nonprofit, provides the infrastructure to tokenize high-return, “real” assets by creating a legally compliant SRC-20 security token that represents fractional ownership of each investment opportunity offered on the Swarm platform. As is typical with all of the best blockchain use-cases, the traditional and restrictive mechanisms in place within a particular industry, in this case legacy finance, have been stripped away, allowing for true democratization via the direct connection of parties previously linked only by a chain of proxies and middlemen.
Swarm directly unites and incentivizes both equity holders and retail investors to participate in augmenting the private equity market in an enormous way. Some experts expect to the private equity industry to double from 2.5 trillion to 5 trillion within the next 5 years. Additionally, while retail investors gain unprecedented access to secondary investment opportunities, private equity holders benefit from the ability to leverage early exit strategies and liquidate their shares when convenient.
Recently, the Chairman of the SEC commented on plans to move ahead with a “major overhaul of the rules intended for mom-and-pop investors, with the goal of opening up new options for them”. This is encouraging in light of the new partnership between Swarm and Robinhood, and demonstrates that the timing for moves by the alliance to open up previously enclosed opportunities for retail investors couldn’t be better.
Swarm is leading the security token industry, providing the legally compliant framework to effectively and seamlessly integrate the worlds of traditional finance and blockchain technology, liberating investment opportunities for all.
For information head to Swarm or join the community discussion on Telegram