Collaboration unlocks the secondary trading of locked tokens on SecondSwap’s marketplace while preserving vesting conditions.
SecondSwap, a decentralized marketplace for illiquid tokens, has formed a strategic partnership with Magna, the leading token management provider, to offer issuer-approved pathways for secondary transfers of locked tokens.
For projects already using Magna for token vesting, this partnership means their existing vesting schedules and contracts remain unchanged. Foundations retain full control, able to finalize transfers by updating the vesting recipient within Magna, while SecondSwap provides a secure, onchain venue for foundation-approved secondary trades.
Accessing liquidity for locked tokens has traditionally been inefficient and opaque. Contributors, employees, and early investors who hold vested tokens often turn to off-chain OTC desks or informal peer-to-peer deals conducted through private chat groups. These transactions are difficult to verify, leave issuers out of the loop, and create reputational and regulatory risks.
SecondSwap directly addresses these issues by partnering with Magna’s vesting infrastructure. This ensures that any secondary trading of locked tokens happens in a controlled, transparent, and onchain environment, always subject to issuer approval. Vesting rules remain fully intact, as foundations can finalize transfers by updating the vesting recipient within Magna. This allows tokenomics to be safeguarded while still giving stakeholders a legitimate, issuer-approved path to liquidity.
Magna is a comprehensive token management provider, managing over $10B in tokens for more than 1 million stakeholders.
With SecondSwap’s Smart Vesting Adapter, Magna clients can now access issuer-approved liquidity options directly onchain. Issuer-approved, smart contract-enforced, and fully transparent.
“This partnership means our token projects and contributors get access to liquidity without breaking vesting conditions, and always with the approval of the issuer. We get approached by OTC desks a lot, and it was important to work with someone like SecondSwap that prioritized having the foundations and issuers in the loop. Listing with SecondSwap removes the usual problems of dealing with OTC desks and private channels and instead brings real value for our clients,” said Magna CEO Bruno Faviero.
A Win-Win Proposition
For Magna, this partnership allows its clients to unlock a new path: enabling locked tokens to access real liquidity options while preserving vesting conditions.
For SecondSwap, it attracts a valuable supply of Magna’s locked tokens to its secondary, onchain marketplace for institutional and retail investors to access, which is aligned with foundations’ interests.
“Locked tokens represent a ton of real-world value that is stuck sitting somewhere because of the lack of scalable exit options. By having Magna come on board, we’re demonstrating that this doesn’t have to be the case and that there actually is a better way to solve this problem, all onchain. We are an issuer-first solution, and not only for projects, but for token foundations, issuers, DAOs, and others,” said SecondSwap Founder, Kanny Lee.
Coupled with increasing regulatory clarity around the world surrounding tokenization, rising retail and institutional adoption of digital assets, and at least $150 billion in combined token unlocks expected from 2024 to 2025 (according to Tokenomist’s 2024 Annual Report), the conditions are ripe for the onchain trading of locked tokens.
This paves the way for SecondSwap to position itself as the go-to secondary marketplace for not only token projects, but also crypto treasuries, DAOs, and employees holding locked token equity to access issuer-approved liquidity options.
Currently supporting Ethereum, Solana, and Avalanche, SecondSwap plans to expand ecosystem integrations and procure more locked token inventory soon.
For early access or pilot participation, contact: [email protected].
Magna is providing token infrastructure for projects building in Web3.
Projects can seamlessly manage their token allocations, automate on-chain token vesting schedules, power large scale airdrops, manage foundation grants, custody tokens, and use escrow services for OTC trades with ease through our user-friendly interface.
Trusted with $10B+ in TVL by over 100 customers, including Optimism, Aptos Labs, Wormhole, Sonic Labs, Aethir, and many more.
About SecondSwap
SecondSwap is one of the first decentralized marketplaces built to unlock liquidity from locked tokens and other hard-to-trade assets. This includes vesting allocations, structured token distributions, and tokenized real-world assets. SecondSwap helps holders turn idle value into active markets and gives projects more control over how supply enters circulation.
This release has been prepared and provided by SecondSwap for informational purposes only. The statements and descriptions herein are solely those of SecondSwap. This release does not constitute an offer to sell or a solicitation to purchase any tokens or securities. Any participation in token-related activities may be subject to eligibility requirements, applicable laws, and platform terms. Digital assets may be volatile and can lose value. They are not legal tender, not backed by any government, and not subject to deposit protection schemes.
