Deutsche Bank-Backed Taurus To Launch On Polygon To Support Its Tokenization

Key Points:

• Taurus has linked with the Ethereum scaling network Polygon as the tokenization of real-world assets gains traction among financial institutions and large companies.
• Taurus’s tokenization business has swollen in recent months.
• The company raised $65 million in funding in a round led by Credit Suisse and Deutsche Bank in February.

Taurus, which offers custody, tokenization, and trading of digital assets, has linked with the Ethereum scaling network Polygon as the tokenization of real-world assets gains traction among financial institutions and large companies.

The link-up with Polygon includes support for staking and decentralized finance (DeFi). The move means Taurus’s clients, which include Credit Suisse and Deutsche Bank, can now leverage Polygon to tokenize any asset, including equity and debt. Polygon becomes the fourth blockchain supported by Taurus’s tokenization platform, following Ethereum, Tezos, and Cardano.

Tokenization, the representation of an asset as units that can be traded in a digital format, is seen as attracting mainstream financial institutions toward the blockchain industry. Tyrone Lobban, head of JPMorgan’s digital assets platform Onyx, in April, referred to tokenization as the “killer app” for traditional finance. Last November, JPMorgan executed live trades using tokenized versions of the yen and the Singapore dollar on Polygon. And in April, Bank of America published a report saying that the tokenized gold market had surpassed $1 billion the previous month.

Taurus CMO Victor Busson stated:

“Our banking, consumer goods, and sports and entertainment clients can now benefit from low fees and faster transactions for any tokenization use cases: equity, debt, structured products, funds, NFTs.”

Founded in 2018, Taurus provides an infrastructure to issue, custody, and trade digital assets and is currently focused on serving banks and financial institutions in Europe. It has plans to expand across the globe. To that end, Taurus raised $65 million in a Series B funding round led by Credit Suisse earlier this year — one month before the Swiss bank was forcibly sold to rival UBS Group for $3.2 billion by Swiss authorities amid collapse fears.

According to Taurus, most tier-1 financial institutions are already interested in issuing tokenized securities, with an eye for blockchain-agnostic and token-agnostic infrastructure.

As a layer 2 blockchain, Polygon is designed to process transactions at a greater speed and lower cost than the main Ethereum network. Tokenized securities on Ethereum, Polygon, and Gnosis reached a $225 million market cap in May, including securities from firms like Matrixport, Backed Finance, Ondo, and Franklin Templeton.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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