Teylor, a German fintech firm, has partnered with digital asset infrastructure provider Taurus to tokenize small and medium enterprise (SME) loans. Through Teylor’s credit platform, SME loans will be originated and managed, while a portion of the credit portfolio will be tokenized on the Taurus infrastructure and TDX-regulated marketplace. This allows professional private debt investors to participate in the returns through a secure blockchain-based secondary market.
Tokenization of SME loans provides an alternative way for businesses to raise capital and create investment opportunities. In a similar move, Italy’s Azimut group recently tokenized a portfolio of loans to Italian SMEs through Sygnum Bank. Furthermore, Defactor Labs, a decentralized finance lending platform, tokenized $100 million worth of Alpha Bonds using the ERC-3643 token standard on the Polygon MATIC network. These bonds were lent to small- and medium-sized enterprises using real-world assets as collateral.
Taurus plans to start with Ethereum for the Teylor Ledger-Based Security for SME Loans and later expand to other blockchains like Polygon and Tezos. This ledger-based security allows for smaller investments and token trading on the regulated TDX marketplace, making it the first Luxembourg-based private debt portfolio tokenization.
The partnership between Teylor and Taurus aims to address the challenge of trading private SME debt, which is traditionally limited to institutional investors. By tokenizing these loans, smaller investors can participate in the secondary market, providing liquidity and diversification.
Overall, the collaboration between Teylor and Taurus represents a significant step in the digitization of SME loans and the expansion of blockchain-based financing options for businesses.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇩🇪 🇮🇹 🇱🇺 🇨🇠|
| Sentiment | very positive |
| Relevance Score | 1 |
| People | Lamine Brahimi |
| Companies | Azimut group, Santander, Defactor Labs, Taurus, Teylor |
| Currencies | Polygon, Lido Staked Ether, Tezos, Bitcoin, Ethereum |
| Securities | None |
