Taurus Partners with Teylor for Credit Tokenization in German SME Sector

Taurus Partners with Teylor for Credit Tokenization in German SME Sector

Innovative Tokenization of SME Loans

Taurus, a digital asset infrastructure provider, has teamed up with Teylor, a German fintech firm specializing in small business loans, to transform loans for small and medium enterprises (SMEs) into tokenized assets. This partnership aims to provide tokenholders with monthly cash flows from these assets.

Integration with Taurus Infrastructure and TDX Marketplace

In this collaboration, Teylor is responsible for originating and managing SME loans through its credit platform. These loans are then partly tokenized on the Taurus infrastructure and made available on the TDX-regulated marketplace. This move allows professional private debt investors to participate in the returns through a secure, blockchain-based secondary market.

Blockchain Tokenization as a Capital Raising Alternative

Blockchain tokenization presents an alternative method for SMEs to raise capital and liquidity while creating diversified investment opportunities. This approach has previously been adopted in Italy, where Azimut group tokenized its first portfolio of loans to Italian SMEs through Sygnum Bank.

Notable Developments in DeFi Lending

In the decentralized finance (DeFi) sector, Defactor Labs tokenized $100 million worth of Alpha Bonds using the ERC-3643 token standard in June. These bonds, tokenized on the Polygon network, were lent to SMEs using real-world assets as collateral.

Future Plans for Blockchain Integration

A Taurus representative revealed plans to start the Teylor Ledger-Based Security for SME Loans on Ethereum, with subsequent rollouts to other blockchains like Polygon and Tezos.

Significance of Teylor’s Ledger-Based Security

Teylor’s ledger-based security aims to simplify private SME debt trading, which has traditionally been a challenge due to limited secondary markets. This technology enables smaller investments and token trading on the regulated TDX marketplace, marking a significant step in private debt portfolio tokenization in Luxembourg.

Impact on Private Debt Investment

This initiative by Taurus and Teylor is poised to reshape the landscape of private debt investment, particularly for SMEs. By leveraging blockchain technology, the partnership seeks to enhance accessibility and efficiency in the private debt market, providing new avenues for investment and capital generation for small and medium-sized enterprises.

    Newsletter | Every weekday

    Smart Central News Weekly Briefing

    Only top industry news of the week in your inbox