Taurus and Chainlink strategic partnership

Swiss cryptocurrency holding and trading firm Taurus is expected to partner with Chainlink to boost institutional tokenized asset adoption.

According to Sergey Nazarov, CEO of Chainlink, tokenization may be the reason why decentralized finance (DeFi) will push traditional finance (TradFi) to become the top customer.

Taurus and Chainlink have teamed up for the Tokenization Project.

Based on the announcement, the Taurus platform will use Chainlink to upgrade tokenized assets. In particular, it uses Chainlink's Offchain data, backup proof, and cross-chain interoperability protocol to accelerate adoption and promote liquidity across multiple blockchain networks.

This partnership marks the coming together of a full-stack digital asset infrastructure platform that spans provisioning, protection and trading.

“Together, Taurus and Chainlink are solving three key challenges in the tokenized asset space—security, data and asset mobility. Taurus will use the ChainLink platform to enrich tokenized assets with high-quality offchain data and unlock cross-chain interoperability, according to an excerpt from the announcement.

Read more: What is Tokenization on Blockchain?

Going forward, Taurus will integrate ChainLink's data feeds for market value, reference data and identity data. This can be used to provide information about the state of assets or to facilitate transactions. In addition, ChainLink's verification of backups helps protect users from overdraft risks and increases backup transparency.

Taurus' integration with Chainlink follows Chainlink's testing of CCIP to link Circle's USDC stablecoin on the blockchain. CCIP is a key component of Chainlink's infrastructure, allowing tokenized assets to be transferred between users of any public or private blockchain they wish to access.

“Our partnership with Chainlink is a major milestone in the evolution of tokenized assets,” said Jürgen Hofbauer, Head of Global Strategic Partnerships at Taurus.

This development comes as Chainlink CEO Nazarov continues to push his campaign for tokenized assets. In his opinion, as TradFi's interest in DeFi grows, the token's real-world assets (RWAs) are about to exceed the value of crypto. Meanwhile, data from RWA.xyz shows it's a nearly $3 billion industry.

Read more: Real World Asset (RWA) Backed Tokens Explained

The traction comes as tokenization gradually solves the infrastructure challenges plaguing TradFi, opening up new investment opportunities. However, there are challenges in the space, including legal considerations, identity standards and data privacy.