Taurus and Chainlink Labs will focus on addressing key challenges in the tokenized asset market related to data integration, security issues, and cross-chain interoperability.
Taurus, a leading provider of digital asset infrastructure solutions, announced a strategic partnership with Chainlink Labs, a developer of a decentralized blockchain oracle network. Through the partnership, the companies plan to address main challenges and complexities that institutional investors face when dealing with tokenized assets.
Specifically, the initiative aims to comprehensively support the tokenized asset market and address issues such as:
- lack of data transparency;
- limited cross-chain interoperability;
- potential vulnerabilities of blockchain projects.
Taurus will leverage the Cross-Chain Interoperability Protocol (CCIP) data feeds. Specifically, it’ll integrate data feeds that provide real-time info on asset prices and transactions, and Proof of Reserve, which will provide data transparency and reduce over-issuance risks. This approach will make asset information more accurate and simplify transactions.
According to Juergen Hofbauer, Global Head of Strategic Partnerships at Taurus, tokenization opens up new investment opportunities, but its implementation comes with several risks due to the lack of reliable correlation mechanisms with off-chain data. He believes the partnership with Chainlink will address this issue by increasing liquidity of tokenized assets through the ability to quickly track asset information.
Angie Walker, Global Head of Banking and Capital Markets at Chainlink Labs, said the collaboration is intended to help increase global adoption of tokenized assets among large financial institutions. He noted that the companies plan to address regulatory issues related to the tokenized assets market.
Taurus recently opened the possibility for SMEs in Switzerland to trade tokenized shares. Chainlink, for its part, is actively exploring the option of tracking financial data in the on-chain space and optimizing the exchange of trade data.
