Swiss credit fintech Teylor and digital asset custody provider Taurus have launched the Teylor ledger-based security to improve the accessibility of small and medium-sized enterprise (SME) credit as an asset class. By tokenizing part of the credit portfolio on the Taurus infrastructure and the Taurus Digital Exchange’s (TDX) regulated marketplace, the companies aim to provide professional private debt investors the ability to participate in the returns through a secure, blockchain-based secondary market. This signifies a first in terms of Luxemburg-based private debt portfolio tokenization.
- The partnership enables access for smaller investors wishing to participate in portfolio returns and is touted as an advancement for the democratization of private debt investment opportunities.
- Over the past three years, Teylor has processed over €3 billion in SME debt.
- The portfolio that underpins the Teylor ledger-based security consists of stable German SME credit.
- Taurus, which has over 50% market share in Switzerland, offers an institutional-grade digital asset infrastructure, regulated by the Swiss Financial Market Supervisory Authority (FINMA).
Teylor’s CEO and Founder, Patrick Stäuble, explained that their portfolio of high-quality SME loans was primarily funded via private transactions with major financial institutions. However, smaller entities such as family offices and individual professional investors also expressed interest in their portfolio returns. Teylor’s ledger-based security, admitted on the TDX platform, now provides a standardized investment product advantageous for professional investors who can simply open an account and trade the company’s security token.
Taurus’ Co-Founder and Managing Partner, Lamine Brahimi, further noted that private SME debt has traditionally been an illiquid asset class with secondary markets relatively inaccessible outside of the institutional investment universe. The Teylor ledger-based security allows investors to commit smaller amounts and trade the token on their regulated TDX marketplace.
This partnership between Teylor and Taurus ultimately provides an innovative way for investors to access the SME credit market and paves the way for increased liquidity within the private debt sphere through tokenization.
