Taurus launches as an asset class credit token for German SMEs
Germany-based Taylor, a fintech firm specializing in the digitization of small business loans, has partnered with digital asset infrastructure provider Taurus to convert SME loans into tokenized assets and provide token holders with monthly cash flow.
In partnership, Taylor originates and manages SME loans. By introducing a portion of this credit portfolio on the Taurus infrastructure and TDX regulated marketplace, professional private debt investors can participate in the proceeds of a secure blockchain-based secondary market.
Blockchain tokenization provides an alternative method for SMEs to raise capital and build liquidity while developing various investment opportunities. In the year In 2021, the Italian Azimut Group certified its first loan portfolio for Italian SMEs through Signum Bank.
On June 6, decentralized finance (DeFi) lending platform Defactor Labs issued $100 million worth of alpha bonds using the ERC-3643 token standard. The bonds, issued on the Polygon MATIC network, are lent to small and medium-sized enterprises with real-world assets, such as receivables, as collateral.
Talking to a representative of Taurus, Cointelegraph gathered that the Taylor Ledger-based security for SME loans will be launched in Ethereum and will later be extended to other blockchains such as Polygon and Tezos.
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According to Lamin Brahimi, managing partner and co-founder at Taurus, private SME debt is traditionally challenging for businesses as secondary markets are limited to institutional investors. Taylor's balance sheet-based security enables small investments and token trading on the regulated TDX marketplace, marking the first Luxembourg-based private debt portfolio token.
In November, Spanish financial services giant Banco Santander chose digital asset management firm Taurus to protect its Swiss clients' bitcoin (BTC) and ether.
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