First OTC swap on Canton Network completed by DRW and Marex
S&P Dow Jones Indices, Kaiko, and Derivnex have successfully executed the first over-the-counter (OTC) total return swap on the Canton Network. The transaction involved DRW and Marex, who utilized a tokenized version of the iBoxx USD Liquid Investment Grade Index. By leveraging the Canton Network, the parties utilized smart contracts to maintain a shared, immutable record of transaction terms and lifecycle events. Kaiko facilitated the tokenization process by integrating benchmark data with specific access permissions and usage rules. This milestone marks the first instance of an OTC derivative referencing a tokenized index on distributed ledger infrastructure. The integration of the Common Domain Model allows for standardized digital representations of complex derivatives, enhancing operational efficiency between counterparties. Future developments aim to integrate digital cash and collateral directly onto the Canton Network to streamline margin and contractual payments. This event signifies a critical step in moving traditional credit market workflows onto interoperable blockchain infrastructure.