German FinTech company Teylor will tokenize SME loans in the country, giving token holders the opportunity to receive monthly deductions.
Digital asset infrastructure provider Taurus announced a partnership agreement with Teylor, a company specializing in the digitization of loans for small and medium enterprises (SME) in Germany. Under the partnership, the business loans of such entities will be tokenized, and the assets generated will provide monthly returns to their holders.
Teylor will act as issuer and service provider, processing and managing loans through its TDX platform. A portion of the company’s loan portfolio will be tokenized via the Taurus infrastructure, after which the assets will be sold to professional investors who will generate income from reselling them in the secondary market.
According to Patrick Stäuble, CEO and Founder of Teylor, loans for German SMEs will be tokenized on the Ethereum network, but they plan to expand the initiative to other blockchains like Polygon and Tezos in the future. Stäuble also revealed that the company processed more than €3 billion worth of SME loans in the last three years.
Lamine Brahimi, Managing Partner and Co-Founder of Taurus, said that the initiative will make private SME debt more liquid, expanding access to these kinds of assets beyond the sphere of institutional investment.
The tokenization process is gaining popularity. Its benefits are being studied by financial regulators in Singapore, the United Kingdom, and Hong Kong and by private financial institutions such as Visa and SWIFT.
