Digitizing Small Business Loans
Teylor, a German fintech firm specializing in digitizing small business loans, has partnered with digital asset infrastructure provider Taurus to tokenize these loans and offer tokenholders monthly cashflows. This collaboration allows professional private debt investors to participate in returns through a secure blockchain-based secondary market.
Unlocking Capital for SMEs
Blockchain tokenization presents an alternative method for small and medium-sized enterprises (SMEs) to raise capital and create investment opportunities. Earlier this year, Italy's Azimut group tokenized a portfolio of loans for Italian SMEs through Sygnum Bank.
Expanding Tokenization
In a recent development, decentralized finance (DeFi) lending platform Defactor Labs tokenized $100 million worth of Alpha Bonds. These bonds, tokenized on the Polygon MATIC network, were lent to small- and medium-sized enterprises using real-world assets as collateral.
Rolling Out on Multiple Blockchains
Taurus plans to start with Ethereum for its Teylor Ledger-Based Security for SME Loans and later expand to other blockchains like Polygon and Tezos. This move aims to provide investors with more options and flexibility.
Breaking Barriers for Private SME Debt
According to Lamine Brahimi, Managing Partner and Co-Founder at Taurus, private SME debt is traditionally challenging to trade due to limited secondary markets. Teylor's ledger-based security allows for smaller investments and token trading on the regulated TDX marketplace, making it the first tokenization of a private debt portfolio in Luxembourg.
In a separate initiative, Banco Santander, a Spanish financial services giant, has chosen Taurus to safeguard its Swiss clients' Bitcoin and Ether holdings.
