Taurus, a digital asset infrastructure provider based in Geneva, Switzerland, has announced a link-up with the Ethereum scaling network Polygon. This partnership will provide support for staking and decentralized finance (DeFi). The firm had previously raised $65 million in a funding round led by Credit Suisse and Deutsche Bank in February.
Tokenization, the representation of an asset as units that can be traded in a digital format, is gaining traction among financial institutions and large companies. Tyrone Lobban, head of JPMorgan’s digital assets platform Onyx, referred to tokenization as the killer app for traditional finance. Last November, JPMorgan executed live trades using tokenized versions of the yen and the Singapore dollar on Polygon. Bank of America also reported that the tokenized gold market had surpassed $1 billion the previous month.
Most Tier 1 financial institutions are entering the space and building capabilities to manage tokenized securities, Taurus said in an email. They all want a blockchain-agnostic and token-agnostic infrastructure.
Polygon is a layer 2 blockchain designed to process transactions at a greater speed and lower cost than the main Ethereum network. It also has aspirations to expand beyond Ethereum to become an internet of blockchains, connecting any Ethereum-compatible networks together.