Swiss cryptocurrency custody and buying and selling agency Taurus has joined palms with Chainlink in a collaboration anticipated to advance institutional tokenized asset adoption.
Chainlink CEO Sergey Nazarov mentioned tokenization could possibly be the issue driving conventional finance (TradFi) to develop into the highest buyer of decentralized finance (DeFi).
Taurus and Chainlink Collaborated for Tokenization Challenge
Based mostly on the announcement, the Taurus platform will leverage Chainlink to boost tokenized belongings. Particularly, it’ll use Chainlink’s offchain information, Proof of Reserve, and Cross-Chain Interoperability Protocol to speed up adoption and drive liquidity throughout a number of blockchain networks.
This partnership signifies the approaching collectively of a full-stack digital asset infrastructure platform protecting issuance, custody, and buying and selling with the developer of important infrastructure for the tokenized asset financial system.
“Together, Taurus and Chainlink are solving three key challenges in the tokenized asset space— security, data, and asset mobility. Taurus will leverage the Chainlink platform to enrich tokenized assets with high-quality offchain data and unlock cross-chain interoperability,” an excerpt within the announcement learn.
Learn extra: What’s Tokenization on Blockchain?
Transferring ahead, Taurus will combine Chainlink Knowledge Feeds for market pricing, reference information, and id information. This may allow the availability of details about belongings’ states or facilitate transactions. Furthermore, Chainlink Proof of Reserve will assist defend customers from over-issuance dangers and improve reserve transparency.
Taurus’ integration with Chainlink follows testing Chainlink’s CCIP to bridge Circle’s USDC stablecoin throughout blockchains. The CCIP is a key element of Chainlink’s infrastructure, enabling the sleek switch of tokenized belongings between any public or personal blockchain the place customers require entry.
“Our collaboration with Chainlink marks a significant milestone in the evolution of tokenized assets,” Juergen Hofbauer, World Head of Strategic Partnerships at Taurus, mentioned.
This growth comes as Chainlink CEO Nazarov continues to push the marketing campaign for tokenized belongings. In his opinion, tokenized real-world belongings (RWAs) are set to surpass crypto in worth as TradFi’s curiosity in DeFi grows. In the meantime, RWA.xyz information displaying it’s nearly a $3 billion business.
Learn extra: Actual World Asset (RWA) Backed Tokens Defined
The traction comes as tokenization progressively addresses the infrastructure challenges that plague TradFi, opening up new funding alternatives. Nevertheless, there stay challenges within the house, together with authorized concerns, id requirements, and information privateness.
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