S&P Dow Jones Indices and Kaiko Enable First On-chain OTC Swap Referencing a Tokenized Benchmark, Executed by DRW and Marex on Derivnex
The iBoxx benchmark supported a live institutional derivative through controlled digital distribution that preserves licensing rights.
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Rhea-AI Summary
S&P Global (SPGI) division S&P Dow Jones Indices enabled a completed swap referencing its tokenized iBoxx USD Liquid Investment Grade Index.
DRW and Marex executed the total return swap, a privately negotiated contract providing index exposure without direct ownership, on Derivnex. Kaiko tokenized the benchmark on the Canton Network, combining index data with access permissions and usage rules that preserve licensing controls. The trade was represented as a smart contract containing its terms, giving the counterparties a shared record for valuations and lifecycle events. S&P DJI said the transaction extends its credit franchise into on-chain finance.
Positive
- Minor pointCompleted DRW–Marex swap puts S&P DJI’s tokenized iBoxx benchmark into use in a live derivative.
Negative
- None.
News Explained
The completed swap does not yet connect Derivnex-managed positions to digital cash or collateral on Canton; that functionality is expected in future and would enable margin, collateral and contractual payments to move on the same infrastructure.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The transaction references the tokenized iBoxx USD Liquid Investment Grade Index and is represented on Derivnex, an institutional OTC derivatives platform built on
The transaction represents the first OTC derivative to reference a fully tokenized index on distributed ledger infrastructure. It demonstrates how benchmark data, licensing, trade representation and valuation can be connected within privacy-enabled infrastructure designed for institutional markets.
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 lifecycle typically involves multiple systems, bilateral communications and ongoing reconciliation between counterparties.
Through Derivnex, the trade was represented on
The Benchmark Behind the Trade
Kaiko tokenized the iBoxx USD Liquid Investment Grade Index on
For this transaction, Kaiko also distributed the signed S&P DJI official index values that Derivnex uses to value the position throughout its lifecycle. Together, the tokenized benchmark and pricing infrastructure allow the index to support a live OTC derivative transaction on distributed ledger infrastructure.
The sample transaction gives benchmark providers a controlled and auditable way to distribute index intellectual property across new institutional markets and products. It also gives trading platforms and counterparties a standardized way to consume benchmark data within their existing transaction and lifecycle workflows.
A Framework for Institutional Derivatives
Derivnex incorporates the Common Domain Model (CDM), providing a standardized digital representation of derivatives transactions and lifecycle events. Built on
The transaction demonstrates how a derivatives workflow can connect benchmark distribution, licensing, trade representation and valuation within shared infrastructure. Future functionality is expected to connect Derivnex-managed positions with digital cash and collateral on
"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
"This transaction shows how established benchmark infrastructure can support new institutional market structures," said Cameron Drinkwater, Chief Product Operating Officer at S&P DJI. "Pairing a flagship index with controlled digital distribution through Kaiko 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."
"This transaction demonstrates how tokenized benchmark infrastructure can support new institutional markets and products, while preserving the licensing, governance and operational standards required by financial institutions." said Ambre Soubiran, CEO of Kaiko.
"In line with Marex's focus on bridging traditional finance and digital assets, this transaction provides a practical example of how OTC derivatives can be represented and managed on distributed ledger infrastructure," said Nilesh Jethwa, CEO of Marex Solutions. "It shows how new technology can support more coordinated and transparent workflows while preserving the controls required by institutional market participants."
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.
ABOUT KAIKO
Kaiko provides institutional-grade data, regulated digital asset services, and infrastructure for onchain finance. Founded in 2014, the company supports trading, valuation, risk management, tokenized assets and onchain 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.
FOR MORE INFORMATION:
S&P Dow Jones Indices
Silke McGuinness
Global Head of Communications
(+1) 415 205 8414
silke.mcguinness@spglobal.com
Kaiko
Victoria Calmon
Editorial & Communications Manager
press@kaiko.com
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SOURCE S&P Dow Jones Indices
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What benchmark did the S&P DJI tokenized-index swap reference?
The completed total return swap referenced the iBoxx USD Liquid Investment Grade Index. DRW and Marex executed the transaction on Derivnex, with the trade represented on the Canton Network and the benchmark tokenized by Kaiko.
How are S&P DJI index values supplied for the Derivnex swap?
Kaiko distributed signed S&P DJI official index values that Derivnex uses to value the position throughout its lifecycle. This pricing infrastructure works alongside the tokenized benchmark to support the live transaction.