Swiss tokenization firm Taurus helped SME credit fintech Teylor to tokenize a portfolio of SME credit. Taurus backers include Credit Suisse, Deutsche Bank, Pictet and other big names. In addition to these it also counts CACEIS, Swissquote and Vontobel as clients.
Teylor – which has processed €3 billion in SME debt during the past three years – is tokenizing its credit portfolio using a Luxembourg structure. The security can be traded on the Taurus TDX regulated marketplace. Usually Teylor raises funding for its portfolio from major financial institutions.
However, a key goal for Teylor with tokenization is fractionalization. That’s not to target retail investors but to enable access to high net worth individuals and family offices.
“The available capital of this investor class is typically not sufficient for a private transaction,” said Patrick Stäuble, CEO and Founder at Teylor. “With the admission of the Teylor ledger-based security on the TDX platform, we can now offer a standardized investment product. Professional investors can simply open an account and trade our security token.”
By opening up private SME debt to a new group of investors and making it tradable, it should improve the liquidity of the asset class. Servicing is automated, with TDX distributing principal and interest to investors monthly.
Meanwhile, TDX is a FINMA regulated marketplace for tokenized securities. In addition to a tokenization solution, TDX also provides digital asset custody technology. In September Deutsche Bank announced a collaboration for both tokenization and digital asset custody.
Given it has several banking clients, Taurus has integrated with multiple core banking systems, including Avaloq and Temenos.
In February the company announced a $65 million Series B funding round led by Credit Suisse. Just a month later the bank was rescued by UBS.
