Taurus, a digital asset infrastructure provider, has partnered with Chainlink Labs, a blockchain tech firm, to facilitate institutional tokenization.
The partnership aims to promote the adoption of tokenized assets in institutional markets by focusing on improving data transparency, cross-chain mobility and security.
In a news release shared with Cointelegraph, Taurus said it will use Chainlink data feeds for “market pricing, reference data, and identity data” to provide asset state information and facilitate transactions.
Related: Tokenized asset market to hit $10T by 2030: Chainlink report
Tokenization challenges
Juergen Hofbauer, global head of strategic partnerships at Taurus, told Cointelegraph that tokenization is “bringing new investment opportunities to all,” but comes with challenges. He added:
“An essential element of the solution is to enrich tokenized assets with a range of high-quality offchain data, including market pricing, reference data, and identity data.”
Related: Taurus enhances Zand Bank’s crypto, tokenization services in UAE
Financial sector implications
Hofbauer said the partnership with Chainlink improves “liquidity and insight — especially cross-chain,” to maintain the “momentum for tokenized assets.”
“Together, we provide financial institutions with crucial information about assets’ state and facilitate transactions across multiple chains.“
Chainlink’s infrastructure, combined with Taurus’ presence in the European digital asset market, offers financial institutions a new opportunity to enhance the tokenization process.
Still, challenges remain.
Tokenized asset adoption faces regulatory challenges and concerns regarding market volatility that the partnership will need to overcome in an increasingly crowded market.
Related: 21.co Bitcoin wrapper to add Chainlink proof of reserve
Taurus’ partnership with Aktionariat
On Sept. 26, Taurus partnered with Swiss fintech firm Aktionariat to facilitate trading tokenized shares from small and medium-sized enterprises in Switzerland.
The partnership leverages Aktionariat’s tokenization solution to enable companies to convert their shares into blockchain tokens on the Ethereum network for trading on the Taurus Digital Exchange.
RealUnit, an investment company focused on real assets, will be the first to test this collaborative solution, which will go live in November.
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