Taurus, a Swiss firm specializing in crypto custody, has partnered with Teylor, a Zurich-based fintech lending platform. This collaboration marks a notable development in the tokenization of assets, particularly focusing on the German small and medium-sized enterprises (SME) market.
Innovative tokenization of SME loans
The partnership involves the tokenization of Teylor’s credit portfolio, a process overseen by the law firm Allen and Overy. These tokens will be eligible for trading on Taurus’ TDX marketplace. Lamine Brahimi, co-founder of Taurus, emphasized that this initiative aligns with Swiss and European regulations, showcasing the growing integration of traditional finance and blockchain technology. The tokenized debt product targets the German SME sector, with Brahimi revealing plans for significant investment from institutional investors in the coming weeks.
Taurus’ TDX marketplace, an extension of its custody services, has already facilitated over 20 transactions, encompassing various assets such as equity, debt, and art. The total notional value of these transactions exceeds $1 billion, highlighting the scale and impact of Taurus’ operations in asset tokenization.
Teylor’s role in empowering German SMEs
Teylor, renowned for its contribution to Germany’s robust Mittelstand economy, offers loans ranging from 100,000 to 1.5 million euros. With backing from major investors like Barclays, the company plays a crucial role in supporting medium-sized businesses that are often overlooked by traditional banking systems. Last month alone, Teylor extended nearly $25 million in loans, according to CEO Patrick Stäuble. These loans, earmarked for tokenization through the partnership with Taurus, will support a diverse range of German industries, from chemicals to precision machinery.
The collaboration between Taurus and Teylor is a testament to the growing trend of tokenizing traditional financial assets. This approach not only diversifies investment opportunities but also enhances liquidity and accessibility in the market. As Switzerland continues to embrace blockchain technology across various asset classes, this partnership stands as a beacon of innovation and regulatory compliance in the rapidly evolving world of cryptocurrency and blockchain.