Taurus links up with Polygon to tokenize real-world assets for TradFi
The integration will allow the Swiss firm to help traditional financial institutions tokenize any real-world asset and manage it in a fully automated process.
Switzerland-based Taurus has integrated Layer-2 network Polygon — including the native token MATIC and smart contracts — with its custody and tokenization platforms called Taurus-PROTECT and Taurus-CAPITAL.
The integration will allow the Swiss firm to help traditional financial institutions tokenize any real-world asset and manage it in a fully automated process, according to a June 2 statement.
Taurus is backed by European banking giants Credit Suisse and Deutsche Bank, both of which participated in its latest fundraising round in February.
Taurus said it expects the digital assets industry to grow beyond $10 trillion in the coming years, especially now that regulators are clarifying frameworks for the sector and its various aspects.
It also believes the tokenization of private assets represents the “next trillion-dollar opportunity” that will push the industry toward that valuation.
Tokenization is the process of creating digitally tradeable units that represent a real-world asset. The traditional financial industry is especially interested in this area and many banks have been experimenting with tokenizing various assets in recent years.
According to Taurus:
“Most Tier 1 financial institutions are entering the space and building capabilities to manage tokenized securities. They all want a blockchain-agnostic and token-agnostic infrastructure.”
The firm said it has been working since 2020 to serve that need and will continue to work toward providing clients the most options possible, while staying compliant with regulatory standards in all operational jurisdictions.
Polygon Labs Global Head of Institutional Capital Colin Butler said:
“The tokenization of real-world assets is a no-brainer at the root of the idea. The challenge is and always has been to build sufficiently advanced infrastructure to enable it.”
Taurus said it picked Polygon as its blockchain of choice because of the large ecosystem, extremely cheap transaction fees, and high throughput.
Additionally, Polygon comes with Layer-1 security as it is built on top of Ethereum.
The firm said these traits allow it to provide its services with minimum risks and a high level of efficiency.
Taurus will also include support for staking and decentralized finance as part of its Polygon integration.