TL;DR
DRW and Marex completed the first OTC swap on Canton Network, referencing S&P DJI’s iBoxx USD Liquid Investment Grade Index tokenized by Kaiko.
The total return swap was represented on Derivnex as a smart contract, giving both counterparties a synchronized record for valuations and lifecycle events.
Future functionality is expected to connect Derivnex positions with cash and collateral, while the completed transaction integrates tokenized benchmark data, licensing and trade management.
DRW and Marex completed the first OTC swap on Canton Network, using a tokenized institutional credit benchmark as the reference for the transaction. In the official announcement , S&P Dow Jones Indices, Kaiko and Derivnex said the total return swap references the iBoxx USD Liquid Investment Grade Index, tokenized on Canton by Kaiko. The milestone brings benchmark licensing, valuation and an OTC derivatives lifecycle onto shared distributed-ledger infrastructure without turning the referenced bonds themselves into tokens. The trade ran through Derivnex, built on Canton Network , with DRW as counterparty and Marex as swap provider.
Tokenized Benchmark Moves Into an Institutional OTC Workflow
The transaction was represented on Canton as a smart contract containing the agreed terms and designed to remain with the trade throughout its lifecycle. DRW and Marex therefore work from a synchronized record for valuations and other lifecycle events rather than relying solely on separate bilateral systems. The practical innovation lies in digitizing the management of an OTC contract after execution, not simply recording a one-time trade on a blockchain. Derivnex incorporates the Common Domain Model to standardize derivatives transactions and processes, extending the same institutional workflow direction seen in Canton-based tokenized repo infrastructure .
Kaiko tokenized the benchmark and distributed signed official index values from S&P DJI that Derivnex uses to value the position. The token combines benchmark data with access permissions and usage rules, allowing authorized participants to consume the index inside digital workflows while preserving licensing and intellectual-property controls. That structure makes the benchmark itself programmable within the derivatives workflow while maintaining the governance standards attached to institutional index data. The transaction therefore differs from crypto-native perpetual markets or tokenized securities trading, even as tokenized derivatives infrastructure expands across institutional and regulated venues.
The current transaction does not yet place every cash and collateral movement onchain. Derivnex said future functionality is expected to connect managed positions with digital cash and collateral on Canton, allowing margin, collateral and contractual payments to move within the same infrastructure. For now, the completed swap demonstrates shared lifecycle management and tokenized benchmark integration, while fully integrated onchain settlement remains a future step. Derivnex initially plans to focus on equity and index derivatives, including index, basket and single-name products. The milestone arrives as RWA derivatives markets broaden the ways traditional financial exposures are represented and traded through blockchain-based infrastructure in practice.
