Derivnex Launches Industry-First OTC Swap on Canton with DRW and Marex

Marex and DRW have a shared, synchronized transaction record for managing valuations and other swap lifecycle events.

Rhea-AI Summary

Marex (MRX) served as swap provider in a completed transaction with DRW on Canton, marking the launch of Derivnex's platform.

The total return swap, a privately negotiated contract providing exposure without direct ownership, references the iBoxx USD Liquid Investment Grade Index. Kaiko tokenized the index on Canton and distributed S&P Dow Jones Indices' official values for ongoing valuation. The trade was represented as a smart contract containing its terms, giving Marex and DRW a shared record for valuations and lifecycle events. Derivnex initially plans to focus on equity and index derivatives; integration with digital cash and collateral is expected in future functionality.

Positive

• Minor pointMarex completed a total return swap with DRW on Canton as the swap provider.

Negative

• None.

Key Figures

OTC swap on Canton: First OTC derivative referencing a fully tokenized index: First

OTC swap on Canton

First

Completed transaction; first OTC swap on Canton

OTC derivative referencing a fully tokenized index

First

On distributed ledger infrastructure

Key Terms

otc swap, total return swap, smart contract, common domain model, +1 more

5 terms

otc swap financial

"completion of the first OTC swap transaction on Canton"

An OTC swap is a privately negotiated derivative contract between two counterparties, traded off-exchange, in which they agree to exchange cash flows or financial exposures (for example interest rates, currencies, commodities, or credit risk) according to specified terms. Because OTC swaps are customized rather than standardized, they can be cleared through a central counterparty or remain bilateral; when bilateral they carry direct counterparty credit risk and typically rely on legal documentation (such as an ISDA Master Agreement), agreed settlement mechanics, and margin or collateral arrangements to manage that risk.

total return swap financial

"The transaction is a total return swap between DRW"

A total return swap is a private contract where one party pays the full economic performance of an asset (income plus price changes) to another party, while receiving a set payment such as a fixed rate or short-term interest in return. It matters to investors because it lets someone gain or shed exposure to an asset’s gains or losses without owning it, offering a way to borrow, hedge, or take leveraged positions while relying on the other party to make payments.

smart contract technical

"represented on Canton as a smart contract"

A smart contract is a computer program stored on a blockchain that automatically carries out the terms of an agreement when preset conditions are met — like a vending machine that releases a snack when you insert the right coins. For investors, smart contracts matter because they can cut out intermediaries, speed up and lower the cost of transactions, and make outcomes more transparent, but they also introduce technology and regulatory risks that can affect asset value.

common domain model technical

"Derivnex incorporates the Common Domain Model (CDM)"

An agreed, shared representation of the key entities, attributes and relationships in a particular business area that different systems, teams or companies use so their data and messages mean the same thing. It functions as a common vocabulary and data structure — for example defining what a “customer,” “transaction” or “security” contains and how those items relate — enabling mapping, validation and consistent processing across multiple IT systems or partners. A common domain model is a design and governance artifact rather than a specific software product: it must be maintained, versioned and adapted to local systems, and it does not mandate particular file formats or technical implementations.

distributed ledger infrastructure technical

"fully tokenized index on distributed ledger infrastructure"

The hardware, software and network components that run a distributed ledger—a shared, tamper-evident record of transactions—across multiple participants. It includes the nodes that store and replicate data, the consensus rules and validators that agree which transactions are recorded, the cryptography that secures entries, and the interfaces (APIs, wallets, smart-contract engines) used to submit, read or execute transactions. Distributed ledger infrastructure can be permissioned or permissionless and describes the technical backbone only; it is distinct from any particular token, application or legal framework built on top of it.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Transaction marks the first OTC swap on Canton Network and the first on-chain derivatives trade tied to S&P Dow Jones Indices' iBoxx USD Liquid Investment Grade Index, with the tokenization of IP provided by Kaiko

NEW YORK, Oct. 13, 2026 /PRNewswire/ -- Derivnex and Canton today announced the completion of the first OTC swap transaction on Canton, marking the launch of Derivnex's platform for bringing institutional derivatives lifecycle management on-chain.

The transaction is a total return swap between DRW, acting as counterparty, and Marex as the swap provider, referencing the iBoxx USD Liquid Investment Grade Index, which Kaiko has tokenized on Canton. OTC swaps are privately negotiated contracts that allow counterparties to gain or manage exposure to an asset or index without owning it directly. While these markets are central to institutional finance, managing a swap over its life typically requires multiple systems, bilateral communications and ongoing reconciliation between counterparties.

Through Derivnex, the trade was represented on Canton as a smart contract containing the transaction terms and designed to remain with the trade throughout its lifecycle. This gives DRW and Marex a shared, synchronized record for managing valuations and other lifecycle events.

Derivnex incorporates the Common Domain Model (CDM), providing a standardized digital representation of derivatives transactions and processes. For this transaction, Kaiko tokenized the S&P iBoxx USD Liquid Investment Grade Index and distributed the S&P DJI official index values used by Derivnex for ongoing valuation of the position, making this the first OTC derivative to reference a fully tokenized index on distributed ledger infrastructure. S&P DJI provides the underlying benchmark data, demonstrating how established benchmark infrastructure can be integrated into new digital derivatives workflows.

"OTC derivatives are one of the largest markets in institutional finance, but much of the infrastructure supporting them remains fragmented," said George Harrington, CEO of Derivnex. "Derivnex gives counterparties a common digital representation of a trade from affirmation through its full lifecycle. Completing the first OTC swap on Canton shows how that model can work in a live institutional market."

Canton provides the shared infrastructure for Derivnex, enabling counterparties to coordinate transaction workflows while maintaining the confidentiality required for bilateral markets.

Derivnex initially plans to focus on equity and index derivatives, including index, basket and single-name products. Future functionality is expected to connect Derivnex-managed positions with digital cash and collateral on Canton, enabling margin, collateral and contractual payments to move within the same infrastructure as the underlying transaction.

Don Wilson, Founder and CEO of DRW, said:
"Uncleared OTC derivatives are a large and growing market with cumbersome back office workflows. With Derivnex on Canton, Marex and DRW are able to work from the same record, thereby streamlining processes. I'm excited by the efficiency this could bring across more trades and counterparties, particularly when cash and collateral movement become integrated."

Nilesh Jethwa, CEO, Marex Solutions, said:
"In line with Marex' focus on bridging the traditional finance and digital asset worlds, this transaction provides a practical example of how OTC derivatives can be represented and managed on-chain while maintaining the controls required by institutional market participants."

Cameron Drinkwater, CPOO at S&P DJI, said:
"This transaction shows how established benchmark infrastructure can support new institutional market structures. Pairing a flagship index with controlled digital distribution extends our credit franchise into on-chain finance, building on more than two decades of liquidity, transparency and tradability on iBoxx benchmarks while preserving trusted rigor and governance."

Yuval Rooz, CEO and Co-Founder of Digital Asset, said:
"Derivatives are a natural fit for programmable financial infrastructure because the transaction continues to evolve long after the initial trade. Derivnex is demonstrating how counterparties can manage that full lifecycle on shared infrastructure while preserving the controls institutional markets require."

Ambre Soubiran, CEO of Kaiko, said:
"Reliable benchmark and pricing data are essential to managing derivatives positions. This transaction demonstrates how tokenized benchmark infrastructure and trusted pricing data can work together to support new institutional markets and products, while preserving the licensing, governance and operational standards required by financial institutions."

Scott O'Malia, CEO of ISDA, said:
"The Common Domain Model provides a consistent digital representation of financial transactions and lifecycle events. Its use in platforms such as Derivnex demonstrates how industry standards can support greater automation and interoperability in derivatives markets at scale."

About Derivnex
Derivnex is the OTC trade affirmation platform on the Canton blockchain that creates smart contracts for lifecycle management, valuation, and digital settlement of assets agreed upon by counterparties. The Derivnex solution dramatically increases the velocity of capital for OTC trades, while reducing costs for all counterparties involved in the transaction.

About Canton
Canton is the only public, permissionless blockchain purpose-built for institutional finance–uniquely combining privacy, compliance, and scalability. With participation from leading global financial institutions and network governance independently facilitated by the Canton Foundation, Canton enables real-time, secure synchronization and settlement across multiple asset classes on a shared, interoperable infrastructure. The open-sourced network is powered by its native token, Canton Coin, and supports decentralized governance and collaborative application development. It's the proven link between the promise of blockchain and the power of global finance, making finance flow the way it should. Learn more at: canton.network.

About Marex
Marex Group Limited (NASDAQ: MRX)  provides market access, infrastructure services and essential liquidity to clients across global commodity and financial markets. The Group provides comprehensive breadth and depth of coverage across four services: Clearing, Agency and Execution, Market Making and Hedging and Investment Solutions. It has a leading franchise in many major metals, energy and agricultural products, with access to more than 60 exchanges. Marex has over 3,400 active clients, including some of the largest commodity producers, consumers and traders, banks, hedge funds and asset managers. With more than 50 offices worldwide, the Group has over 3000 employees across Europe, Asia and the Americas. For more information visit www.marex.com.

About Kaiko
Kaiko provides institutional-grade data, regulated digital asset services, and infrastructure for on-chain finance. Founded in 2014, the company supports trading, valuation, risk management, tokenized assets and on-chain applications, connecting traditional and blockchain-based markets. Its clients include banks, asset managers, exchanges and leading financial institutions worldwide. For more information, visit www.kaiko.com.

About S&P Dow Jones Indices
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets. S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provide essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit: www.spglobal.com/spdji.

The iBoxx USD Liquid Investment Grade Index (the "Index") is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by DRW and Marex Solutions. S&P®, S&P 500®, US 500™, The 500®, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"), and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by DRW and Marex Solutions. Financial products (including OTC Swaps) are not sponsored or sold by SPDJI, Dow Jones, S&P or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.

Contact: Paul Patella, media@digitalasset.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/derivnex-launches-industry-first-otc-swap-on-canton-with-drw-and-marex-302906256.html

SOURCE Canton Network

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What index does Marex's swap with DRW on Canton reference?

The swap references the iBoxx USD Liquid Investment Grade Index. Kaiko tokenized the index on Canton and distributed S&P Dow Jones Indices' official index values used by Derivnex for ongoing valuation of the position.