Swiss cryptocurrency custody and trading firm Taurus has received approval from the Swiss financial regulator FINMA to offer blockchain-based shares in unlisted companies to retail investors. This move aims to bring tokenized securities to a broader audience and democratize access to digital assets.
Taurus’ TDX marketplace: Enabling wider participation
Taurus, with the backing of Deutsche Bank (DBK), operates the TDX marketplace, where transactions can be conducted using cryptocurrencies as well as Swiss francs (CHF), Euros (EUR), and U.S. dollars (USD). Several Swiss companies have already chosen TDX to issue tokenized shares, including Investis, la Mobilière, Qoqa, Structured Commodity & Corporate Finance (SCCF), Swissroc, and Teylor—a fintech lending firm that collaborates with Taurus in issuing tokenized shares for professional investors.
Expanding access: Retail investors welcome
Previously, TDX was exclusively authorized for professional or qualified investors. However, with the recent approval from FINMA, Taurus can now extend its services to retail investors. This significant development enables retail investors to participate in capital raises for unlisted companies in a primary market setting and also engage in secondary market activities.
Lamine Brahimi, co-founder of Taurus, emphasized the significance of this milestone, stating, “Our TDX marketplace had one thing missing because it was only authorized for professional or qualified investors. Now FINMA has granted us the green light to open it to retail investors as well. We think it should be as easy to buy a share of a company as it is to buy a book on Amazon.”
Targeted access and compliance requirements
As of now, TDX is primarily targeted at Swiss residents. However, there is potential for opening access to additional investors, provided they meet specific compliance requirements, depending on the trading segment and the issuer. This approach ensures that regulatory standards are upheld while expanding the availability of tokenized securities to a broader investor base.
Overall, Taurus’ approval by FINMA to offer blockchain-based shares in unlisted companies to retail investors is a significant step toward making tokenized securities more accessible and inclusive. The TDX marketplace’s ability to facilitate transactions in both cryptocurrencies and traditional fiat currencies further enhances its appeal to a diverse range of investors. This development reflects the growing interest in the tokenization of assets and the desire to simplify the investment process, making it as straightforward as purchasing goods online.