Taurus will launch the world’s first regulated marketplace for digital assets on May 10th. These digital assets will be traded in the form of tokenized securities, more widely known as STO’s (Security Token Offerings). The STO’s that will be traded, will be tokenized on a public blockchain.
Tokenizing assets on a blockchain is the process where traditional assets are digitized, so they can be traded more efficiently in smaller fragments, while still being able to fully follow regulations. Taurus will support two blockchains on their platform: Tezos and Ethereum.
“Issuers will have the choice to tokenize securities on the Ethereum and Tezos blockchains, leveraging standards published by the Capital Markets and Technology Association (CMTA).”
Starting May 10, 2021, market players will be able to enjoy TDX’s unparalleled levels of flexibility with regards to token standards and markets that are available.
Securities issued by numerous companies and issuers, starting with Audacia Holding, a fast-growing e-commerce pioneer with 1.2 million clients, will be admitted for trading.
Several banks and financial institutions are being onboarded as participants, including, Arab Bank Switzerland, FlowBank, Hypothekarbank Lenzburg and SEBA Bank, as well as Investis Group, a Swiss stock-listed real estate company, and Stoneweg, a Geneva-based real estate investment company.
For different assets, different regulations apply. Certain types of assets are highly regulated. These assets can only be traded in a strict regulated environment.
These regulations must be enforced, which means that certain legal and administrative steps need to be taken when trading these assets. This makes trading these assets expensive and sometimes time-consuming. Digitizing these steps through smart contracts on blockchain means you can save time and money. This is where STO’s/digital securities can make a difference.
STO’s are tokenized assets. This means that the value of an asset is represented by tokens that are registered on a blockchain. These Tokens are classified as a “Security”, which are assets that are strictly regulated.
Registering STO’s on a blockchain, enables the issuer to make sure that all limitations that are necessary to comply with regulations, are registered and enforced on the blockchain through sets of smart contracts that apply to the token.
Another advantage of tokenizing assets, is the fact that you can fractionalize large value assets. The best example in this case is tokenizing real estate. When tokenized, investors can now buy a percentage of an object instead of needing to buy the entire property. This lowers the bar immensely for people that want to invest in real estate, but have limited funds.
About Taurus SA
Taurus SA was founded in April 2018 in Geneva, Switzerland, specialising in digital assets and blockchain. Taurus was founded by senior executives with a background in banking, regulatory, IT and cyber security. Taurus offers enterprise grade financial market infrastructure solutions for digital assets as well as other financial services to its clients.
It is a leader in Europe and Switzerland. Taurus solutions are in production and entrusted with the full spectrum.