Deutsche Bank Supports Taurus in Tokenizing German SME Loans

• Swiss Crypto Custodian Taurus collaborates with Fintech Lending Platform Teylor
• Teylor's Credit Portfolio Tokens for Secondary Market Trading
• Tokenized Debt Product for the German SME Market
• Global Uptake of Traditional Finance Tokenization
• Teylor's Loan Offering and Future Tokenization Plans

Swiss Crypto Custodian Taurus collaborates with Fintech Lending Platform Teylor

Taurus, a prominent Swiss firm that offers crypto custody services and backed by Deutsche Bank (DBK), has entered into a partnership with Teylor. Teylor is a fintech lending platform based in Zurich that specifically caters to the German SME marketplace. This collaboration marks another step towards the pervasive trend of tokenizing all kinds of assets.

Teylor's Credit Portfolio Tokens for Secondary Market Trading

The duo announced on Thursday that Teylor's credit portfolio tokens, structured under the supervision of the legal firm Allen and Overy, are eligible for secondary market trading on the TDX marketplace of Taurus. The process of tokenization employs a Luxembourg-based investment vehicle and is entirely in alignment with Swiss and European regulations.

Tokenized Debt Product for the German SME Market

As per Lamine Brahimi, the co-founder of Taurus, the tokenized debt product targeted at the German SME market is set to attract significant investment from a number of institutional investors within the forthcoming two weeks. Brahimi stated that the TDX market is another significant venture of Taurus besides custody, and they have successfully completed more than 20 transactions. These transactions comprise tokenized equity, debt, structural products, and art, and their notional value exceeds $1 billion.

Global Uptake of Traditional Finance Tokenization

The worldwide adoption of traditional finance tokenization is on the rise, thus it's not surprising that Switzerland, with its crypto-friendly stance, is providing an array of asset classes with institutional-grade blockchain treatment.

Teylor's Loan Offering and Future Tokenization Plans

Teylor, which provides loans ranging from 100,000 euros ($109,000) to 1.5 million euros ($1.6 million) to stimulate Germany's vibrant Mittelstand economy, is backed by investors such as U.K. bank Barclays (BARC). CEO Patrick Stäuble disclosed that the firm offered loans close to $25 million last month. Stäuble stated that Teylor provides loans to businesses that typically generate between five and 50 million in revenues, making them slightly too large for a bank branch but a bit too small for a corporate finance department. He added that the loans they intend to tokenize will be provided to outstanding German businesses, covering a wide range of sectors from industrials, chemicals, and precision machinery to import/export.

Edited by Jonathan Stoker