Swiss cryptocurrency custody and trading firm Taurus has joined hands with Chainlink in a collaboration expected to advance institutional tokenized asset adoption.

Chainlink CEO Sergey Nazarov said tokenization could be the factor driving traditional finance (TradFi) to become the top customer of decentralized finance (DeFi).

Taurus and Chainlink Collaborated for Tokenization Project

Based on the announcement, the Taurus platform will leverage Chainlink to enhance tokenized assets. Specifically, it will use Chainlink’s offchain data, Proof of Reserve, and Cross-Chain Interoperability Protocol to accelerate adoption and drive liquidity across multiple blockchain networks.

This partnership signifies the coming together of a full-stack digital asset infrastructure platform covering issuance, custody, and trading with the developer of essential infrastructure for the tokenized asset economy.

“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 in the announcement read.

Moving forward, Taurus will integrate Chainlink Data Feeds for market pricing, reference data, and identity data. This will enable the provision of information about assets’ states or facilitate transactions. Moreover, Chainlink Proof of Reserve will help protect users from over-issuance risks and increase reserve transparency.

Taurus’ integration with Chainlink follows testing Chainlink’s CCIP to bridge Circle’s USDC stablecoin across blockchains. The CCIP is a key component of Chainlink’s infrastructure, enabling the smooth transfer of tokenized assets between any public or private blockchain where users require access.

“Our collaboration with Chainlink marks a significant milestone in the evolution of tokenized assets,” Juergen Hofbauer, Global Head of Strategic Partnerships at Taurus, said.

This development comes as Chainlink CEO Nazarov continues to push the campaign for tokenized assets. In his opinion, tokenized real-world assets (RWAs) are set to surpass crypto in value as TradFi’s interest in DeFi grows. Meanwhile, RWA.xyz data showing it is almost a $3 billion industry.

The traction comes as tokenization progressively addresses the infrastructure challenges that plague TradFi, opening up new investment opportunities. However, there remain challenges in the space, including legal considerations, identity standards, and data privacy.

Source : BeInCrypto - Oct 2, 2024