- The partnership augments a global tendency for all tokenized assets
- The tokenized debt product expects a huge investment from institutions
Crypto custodian Taurus, which is backed by Deutsche Bank, and fintech lender Teylor announced a partnership to tokenize small and medium-sized enterprise loans in Germany. Both companies are based in Switzerland. The partnership augments a global tendency involving all kinds of tokenized assets, CoinDesk reported.
The companies added that Taurus’ TDX marketplace would admit Teylor’s credit portfolio tokens for secondary trading. Law firm Allen and Overy oversees the latter’s structure.
A landmark investment
The process of tokenization complies with all applicable Swiss and European regulations and involves a Luxembourg-based investment vehicle according to Taurus cofounder Lamine Brahimi. The tokenized debt product targeting the German SME market is expecting a highly significant investment from institutional entities in the immediate future, Brahimi added, saying:
TDX market is Taurus’ other business besides custody, and we have done 20-plus transactions. These include tokenized equity, debt, structural products and art. In terms of notional value, it’s over $1 billion so far.
Considering how popular tokenization of traditional finance has become worldwide, crypto-friendly Switzerland’s institutional-grade blockchain treatment of all kinds of digital assets is hardly a surprise.
Teylor granted almost $25M of loans last month
Teylor offers loans ranging from the equivalent of $109,000 to $1.6 million in euros to small and medium-sized enterprises in Germany. The fintech lender is backed by UK’s leading Barclays Bank and other prominent investors. In November 2023, the company offered short of $25 million of loans.
Targeting a vast range of industries
Teylor CEO Patrick Stäuble said in an interview that his company lends to businesses whose revenue ranges from five to 50 million, whose needs exceed what a bank branch can offer, but are “too small for a corporate finance department.” He added that Teylor’s tokenized loans would target all kinds of industries, ranging from chemicals and industrials to import/export and precision machinery.
