DRW and Marex complete OTC swap referencing tokenized S&P iBoxx Index
DRW and Marex have executed an over-the-counter total return swap referencing a fully tokenized S&P iBoxx USD Liquid Investment Grade Index, run on Derivnex over the Canton Network.
Trading firms DRW and Marex have completed an over-the-counter total return swap referencing a fully tokenized index, a transaction S&P Dow Jones Indices and Kaiko billed as the first OTC derivative of its kind to run on blockchain infrastructure.
The swap references the S&P iBoxx USD Liquid Investment Grade Index and was executed on Derivnex's platform, which operates on the Canton Network. Kaiko tokenized the benchmark and supplied the official index values used to value the trade on an ongoing basis.
According to S&P DJI, the structure shows how blockchain rails could connect benchmark data, licensing and derivatives lifecycle management, potentially easing workflows that are traditionally split across institutional trading desks. Cameron Drinkwater, chief product operating officer at S&P DJI, said pairing a flagship index with controlled digital distribution through Kaiko pushes the firm's credit franchise into on-chain finance, building on more than two decades of iBoxx liquidity, transparency and tradability while keeping established governance standards intact.
Shared infrastructure for counterparties
Canton provides shared infrastructure for Derivnex, allowing counterparties to coordinate transaction workflows while keeping trade details confidential. Derivnex CEO George Harrington said the platform gives counterparties a common digital representation of a trade from affirmation through its full lifecycle.
The deal lands amid a wider push to bring tokenization into traditional markets. Last December, the Depository Trust & Clearing Corporation allowed participants to convert DTC-held U.S. Treasuries into blockchain tokens as part of a 2026 pilot involving ComposerX and the Canton Network. Canton has also handled more than $350 billion in daily U.S. Treasury repo volume.
Traditional data providers are moving in the same direction. S&P Global recently led a strategic investment in Kaiko, extending the crypto data provider's Series B funding round to $110 million.
Source: The Block