Swiss digital asset service provider, Taurus, has formed an alliance with Ethereum blockchain scaling network, Polygon.
Switzerland-based Taurus, a provider of services including custody, tokenization, and trading of digital assets, has announced a strategic partnership with Polygon, an Ethereum scaling network. This partnership will enable Taurus to support staking and DeFi services, according to an announcement made by the company.
Earlier this year, Taurus attracted substantial financial support, securing $65 million in funding from a round led by heavyweights Credit Suisse and Deutsche Bank. This alliance with Polygon underlines the increasing influence of tokenization within the financial sector.
Tokenization involves representing physical assets as digital units that can be traded electronically. This growing trend is drawing significant interest from traditional financial institutions towards the emerging blockchain sector.
For instance, in April, Tyrone Lobban, who heads JPMorgan’s digital assets platform Onyx, identified tokenization as a groundbreaking technology for traditional finance. Notably, JPMorgan has previously executed live trades on Polygon, using tokenized versions of the yen and Singapore dollar.
Moreover, a Bank of America report from April indicated the impressive growth of the tokenized gold market, which had exceeded $1 billion in the month prior.
Taurus emphasized the growing involvement of top-tier financial institutions in this space, stating that these firms are actively developing capabilities to handle tokenized securities. The company also noted that these institutions are increasingly seeking a blockchain and token-agnostic infrastructure.
Polygon’s design as a layer-2 blockchain positions it to process transactions faster and at a lower cost than the primary Ethereum network.
Further, Polygon harbors ambitions of evolving into an “internet of blockchains”, aiming to link any Ethereum-compatible networks while enhancing transaction speeds and reducing costs.
This association with Taurus further bolsters Polygon’s aspirations and signals a positive trend for the integration of blockchain technology within traditional finance.