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Coinbase's Investment in IX Swap’s Group: Pioneering Regulatory-Compliant DeFi for Tokenized Real-World Assets

The decentralized finance (DeFi) space has been evolving rapidly, pushing boundaries and challenging traditional financial systems. However, amidst this evolution, regulatory compliance has remained a critical concern, especially when it comes to handling tokenized real-world assets (RWAs). In a groundbreaking move in 2022, Coinbase Global, Inc (Coinbase), the operator of the world’s leading crypto assets exchange, became one of the key investors in IX Swap’s group of companies. IX Swap operates a regulatory-compliant automated market maker (AMM) powered decentralized exchange (DEX) focused on tokenized RWAs. This strategic investment marked a significant milestone in the convergence of traditional finance (TradFi) with decentralized technologies.

Coinbase's Investment:

Coinbase's decision to invest in the RWA industry paves the path towards mass adoption and distribution of RWAs across both TradFi platforms, such as banking  and fintech platforms, as well as across DeFi, including crypto exchanges and RWA startup platforms. This supports IX Swap’s commitment to supporting innovative projects that bridge the gap between TradFi and the burgeoning DeFi world. With its vast experience and reputation in the crypto industry, Coinbase's backing lends credibility and legitimacy to IX Swap's vision of creating a compliant and efficient platform for trading tokenized RWAs and global distribution to millions, and eventually billions, of users.

Strategic Value:

For Coinbase, it represents a strategic entry into the emerging market of RWA, diversifying its offerings beyond traditional crypto assets. Coinbase recently acquired One River Asset Management which was then rebranded as Coinbase Asset Management, and is building an RWA exchange called  Project Diamond in preparation to enter the Abu Dhabi Global Market RegLab sandbox. This signifies Coinbase’s commitment to the RWA space. IX Swap offers all its partners access to its cutting-edge technology and expertise in regulatory compliance, strengthening its position as a trusted bridge between TradFi and DeFi IX Swap was built as the Uniswap for RWAs, offering its liquidity pools and secondary trading venue to all global RWAs.

The backing of a reputable industry player like Coinbase and many other leading TradFi and DeFi investors not only enhances IX Swap's credibility but also opens doors to potential partnerships and collaborations within the crypto and TradFi sectors alike. Further, it is anticipated that Coinbase's extensive user base and global reach can help drive adoption and bootstrap liquidity for the RWA industry, accelerating IX Swap’s growth and market penetration.