Fetch.ai and Grey Swan Digital join forces to reinvent the $500 trillion global derivatives market

Oct 22, 2019

Fetch.ai and Grey Swan Digital have entered into an agreement to integrate their platforms in order to offer Smart Market Making and Smart Margin Lending.

During the week commencing 11 November, Grey Swan will announce its launch of the Price Sharing Economy. Combining Price Sharing and the Fetch.ai Smart Ledger will bring the power of conventional derivatives to the decentralized economic system. As a result, anyone anywhere will be able to trade price, make markets, and offer margin lending.

The partnership will see Grey Swan provide a distributed trading platform with an innovative, easy to use graphical user interface. It will be interoperable with blockchain and legacy platforms, and will enable decentralized smart clearing and collateral management.

Fetch.ai’s autonomous agent technology will be utilized for smart market making as well as smart margin lending. Its intelligent blockchain will also allow for hosting key trading functionality and for agent-based trade and collateral management.

For the first time in a distributed platform, end users will be able to create bespoke derivative solutions in any good or service with a common price. Moreover, the combined platform will automate the process of providing economic security for producers while generating economic opportunity for investors and speculators. Fetch.ai’s autonomous agents will allow users to define risk profiles that match their unique needs, manage customer positions, provide liquidity within user specified risk constraints, manage collateral, and perform risk-based lending to traders. Finally, a long tail of lenders will compete to finance these global trades.

Fetch.ai provides the next-generation, digital trading platform where agents can interact and execute unsupervised economic transactions. As revealed on 2 October, Turkish steel mills, including Bastug Metallurgy, and traders have joined start-up Fetch.ai to develop a decentralized, blockchain-based tokenized metals exchange. Grey Swan will participate in this consortium by allowing steel producers to protect operating margins.

“The scale of any steel market hedge will exceed that of anything currently seen elsewhere in the decentralized finance space, running into hundreds of millions of dollars monthly” said Grey Swan CEO Peter Harrigan.

Fetch.ai CTO Toby Simpson said: “Grey Swan’s Price Sharing Economy marks a breakthrough in risk management. Now, anyone can create customized derivatives products, merging the innovation of traditional financial markets with the decentralization of blockchain. Fetch.ai’s autonomous agent technology will play a pivotal role in realizing Grey Swan’s goal of creating a vibrant risk transfer ecosystem in which anyone can participate, and where the only limitations are your imagination. If you can visualize it, you can create it with Grey Digital’s Price Sharing Economy and Fetch.ai’s smart ledger.”

Testing of the customized derivatives solution is now underway, with an incremental rollout scheduled for early 2020. The deal between Grey Swan Digital and Fetch.ai will see both parties staking tokens and contributing engineering resources for the development of the derivatives framework.

Autonomous agents will allow users to set alerts for specific trading opportunities, manage customer positions in Grey Swan fungible objects, provide liquidity within user specified risk constraints, manage collateral in Grey Swan’s platform, and perform risk-based lending to traders on the Grey Swan platform.