Trading firms DRW and Marex have completed a landmark transaction, executing the first over-the-counter (OTC) derivative that references a fully tokenized index on blockchain infrastructure. The total return swap, facilitated on Derivnex's platform using the Canton Network, is tied to the S&P iBoxx USD Liquid Investment Grade Index. Kaiko played a key role by tokenizing the benchmark and providing official index values to support ongoing trade valuation.
The transaction highlights how blockchain technology can streamline traditionally fragmented institutional trading workflows by connecting benchmark data, licensing, and derivatives management. According to S&P Dow Jones Indices (S&P DJI), this innovation could enhance efficiency and transparency in institutional trading. Cameron Drinkwater, chief product operating officer at S&P DJI, noted that pairing a flagship index with controlled digital distribution through Kaiko extends their credit franchise into on-chain finance, leveraging decades of liquidity and tradability.
Canton Network provides shared infrastructure for Derivnex, enabling counterparties to coordinate transaction workflows while maintaining confidentiality. Derivnex CEO George Harrington emphasized that the platform offers a common digital representation of a trade from affirmation through its full lifecycle. This development follows DTCC's December pilot, which allowed participants to convert DTC-held U.S. Treasuries into blockchain tokens using ComposerX and the Canton Network, which has processed over $350 billion in daily U.S. Treasury repo volume.
The transaction underscores the growing trend of traditional financial data providers expanding into tokenized markets. S&P Global recently led a strategic investment in Kaiko, boosting the crypto data provider's Series B funding round to $110 million.