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, announced a strategic partnership with Polygon, an Ethereum scaling network. The partnership will allow Taurus to support staking and DeFi services, according to an announcement made by the company.
Earlier this year, Taurus attracted substantial financial backing, securing $65 million in funding in a round led by heavyweights Credit Suisse and Deutsche Bank. This alliance with Polygon highlights the growing influence of tokenization within the financial industry.
Tokenization involves representing physical assets as digital units that can be exchanged electronically. This growing trend is driving significant interest from traditional financial institutions towards the emerging blockchain sector.
For example, in April, Tyrone Lobban, who runs Onyx, JPMorgan’s digital asset platform, identified tokenization as a game-changing technology for traditional finance. Notably, JPMorgan has previously executed live trades on Polygon, using tokenized versions of the yen and Singapore dollar.
Additionally, a Bank of America report from April indicated the impressive growth of the token gold market, which had surpassed $1 billion the previous month.
Taurus highlighted the growing involvement of leading financial institutions in this space, stating that these companies are actively developing capabilities to handle tokenized securities. The company also noted that these institutions are increasingly looking for blockchain and token-agnostic infrastructure.
Polygon’s design as a layer 2 blockchain positions it to process transactions faster and cheaper than the main Ethereum network.
Additionally, Polygon has ambitions to evolve into an “internet of blockchains,” aiming to connect all Ethereum-enabled networks while improving transaction speeds and lowering costs.
This association with Taurus further strengthens Polygon’s aspirations and signals a positive trend for the integration of blockchain technology into traditional finance.