DRW and Marex completed the first on-chain bond index swap on the Canton network

According to The Defiant, trading firm DRW executed a total return swap with Marex on the Canton network through Derivnex, referencing the on-chain corporate bond benchmark from S&P Dow Jones Indices. S&P Dow Jones Indices announced this transaction with Kaiko on October 13.

The swap was provided by Marex, with DRW as the counterparty, referencing the iBoxx USD Liquid Investment Grade Index, which tracks investment-grade corporate bonds that are dollar-denominated and have good liquidity. The swap provides both parties with exposure to the index without holding the underlying bonds. The transaction will synchronize events such as valuations during the contract's duration between both parties, and plans to migrate margin, collateral, and contract payments to the same infrastructure will be advanced in subsequent phases.

Kaiko's tokens combine benchmark data with access permissions and usage rules, retaining the authorized control of S&P Dow Jones Indices, and distributing signed official index values for Derivnex to use for valuation. Derivnex expresses the transaction terms in the form of Canton smart contracts and introduces a universal domain model standard for derivatives trading. DRW founder and CEO Don Wilson stated that both parties can "work off the same record, thereby simplifying the process," and noted that once cash and collateral flows are integrated, more transactions are expected to achieve greater efficiency.