German SME credit to be tokenized
Taurus, a Swiss company that handles digital asset custody and issuance infrastructure, announced on the 14th a partnership with Taylor, a German fintech financing platform specializing in the small and medium-sized enterprise market.
The two companies say the purpose of the partnership is to tokenize loans for small and medium-sized businesses in Germany. This is likely to be part of the movement toward tokenization of real-world assets (RWA), which has been attracting increasing attention from the financial industry recently.
What is RWA?
Abbreviation for “Real World Asset.” RWA that is tokenized on the blockchain includes real assets such as real estate, artwork, trading cards, and securities such as stocks and bonds.
▶️Virtual currency glossary
connection:Why investors are interested in real asset tokenization and what is Real World Assets (RWA)?
A portion of Taylor’s small business credit portfolio will be tokenized using Taurus’ infrastructure and TDX, a regulated exchange operated by Taurus. This is expected to enable professional private bond investors to generate returns through a secure blockchain-based secondary market.
Taylor is a Swiss technology company that has developed software that allows financial institutions to build and offer digital credit products. Taylor’s software allows banks to digitize their lending processes and products, reducing costs.
Small businesses can also gain rapid access to capital through Taylor’s proprietary private debt funds.
Ramin Brahimi, Managing Partner and Co-Founder of Taurus, commented:
Private small business debt has long been an illiquid asset class because non-institutional investors have little access to secondary markets.
Taylor ledger-based digital securities allow investors to invest in smaller amounts than before and trade their tokens on the TDX exchange.
Taylor has a track record of handling over 470 billion yen (3 billion euros) of small and medium-sized business debt over the past three years. Additionally, the underlying portfolio of Taylor Ledger-based securities is comprised of German small and medium-sized enterprises credit with stable cash flows.
Brahimi also said that the tokenization process will be carried out through a Luxembourg-based investment firm and is designed to comply with both Swiss and European regulations.
European financial giant Deutsche Bank also announced a partnership with Taurus in September. This move is aimed at expanding into virtual currency storage services and asset tokenization businesses.
connection: Deutsche Bank partners with Taurus to manage cryptocurrencies and tokenized assets
Taurus was founded in Switzerland in 2018. It provides infrastructure that covers the full range of digital assets, and in September began supporting permissioned blockchains such as Hyperledger BESU and Quorum.
connection: Tokenization and custody provider Taurus expands to permissioned blockchain
Case study of Mitsubishi UFJ Trust and Banking et al.
The movement towards asset tokenization is gaining momentum in Japan as well, and it is reported that around 30 companies, including Mitsubishi UFJ Trust and Banking and Progmat, which is independent from the company, are working on digital securitization of venture capital (VC) funds. By the way.
connection:Japanese government also participates Approximately 30 private companies including Progmat and SBI Securities are converting VC funds into digital securitization