By
Bhushan Akolkar
December 13th, 2023
Aside from Teylor, Taurus has also secured other partnerships to enhance its crypto custodian and tokenization services.
Taurus, a cryptocurrency custody firm based in Switzerland, has secured a strategic partnership with Teylor, a financial services company and lender focused on the German small and medium-sized enterprises (SMEs) market for the tokenization of assets.
In a CoinDesk report on December 14, the company’s co-founder Lamine Brahimi revealed that the collaboration involved tokenizing Teylor’s credit portfolio, a process overseen by the law firm Allen and Overy. These tokenized debt products will be available for trading on the Taurus TDX market upon completion.
Tokenization of SME Loans for the German Market
Brahimi told CoinDesk that the tokenization process will involve an unnamed Luxembourg-based investment vehicle and fully comply with both Swiss and European regulations. Furthermore, the Taurus co-founder disclosed that the tokenized debt products would attract “landmark” investments from prominent investors upon launch in the coming weeks.
Apart from offering crypto custodian services to digital asset traders in Europe, the company has established a unique position in the TDX market. Successfully executing over 20 transactions, the firm has generated more than $1 billion in business.
“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,” Brahimi said.
Its new business partner, Teylor, provides loans ranging from 100,000 euros ($109,000) up to 1.5 million euros ($1.6 million) to Germany’s Mittelstand economy and is backed by investors like UK bank Barclays.
In an interview, the company’s CEO, Patrick Stäuble, also told CoinDesk that the financial services firm extended nearly $25 million in loans last month to an undisclosed SME.
Stäuble said the upcoming tokenized debt products will be exclusively designed for German small businesses cutting across different industries, including chemicals and precision machinery.
“We give loans to businesses that usually make between five and 50 million revenues, which are kind of maybe a little bit too big for a bank branch and a little bit too small for a corporate finance department. The loans we are going to tokenize will be for fantastic German businesses, everything from industrials, chemicals, and precision machinery to import/export,” Stäuble said.
Taurus Partners Deutsche Bank
Aside from Teylor, Taurus has also secured other partnerships to enhance its crypto custodian and tokenization services.
The company teamed up with Deutsche Bank (DBK) earlier in September. The alliance aims to enable the bank to provide customers with digital asset custody and tokenization services.
DBK has already applied for a crypto custody license with the German Financial Authority, the Federal Financial Supervisory Authority, referred to as BaFin, in June. If approved, the company can serve as a digital asset custodian through its collaboration with Taurus.
The financial services firm has a longstanding business relationship with Taurus, having been among the major contributors to a $65 million Series B fundraising led by Credit Suisse in February of this year for the company.