Polygon teams up with Taurus to enhance DeFi and cryptocurrency growth

Swiss digital asset service provider, Taurus, has formed a strategic alliance with Ethereum blockchain sizing network, Polygon.

Switzerland-based Taurus, a company that provides services including custody, tokenization and trading of digital assets, has announced a strategic partnership with Polygon, a network to scale Ethereum. This partnership will enable Taurus to support staking and DeFi services, according to an announcement from the company.

Earlier this year, Taurus attracted major financial support, securing $65 million in financing from a round led by Credit Suisse and Deutsche Bank. This alliance with Polygon underscores the token’s growing influence in the financial sector.

Tokenization involves the representation of physical assets as digital units that can be traded electronically. This growing trend is attracting huge interest from traditional financial institutions towards the emerging blockchain sector.

For example, in April, Tyrone Lobban, who heads digital asset platform Onyx at JPMorgan, identified tokenization as a leading technology for traditional finance. Notably, JPMorgan previously executed direct trades on Polygon, using tokenized versions of the yen and the Singapore dollar.

Moreover, Bank of America’s April report pointed to the impressive growth of the tokenized gold market, which surpassed $1 billion in the previous month.

Emphasizing the increasing participation of top-tier financial institutions in this area, Taurus noted that these companies are actively developing their capabilities to deal with tokenized securities. The company also noted that these institutions are increasingly seeking to build blockchain and token infrastructure.

Designing Polygon as a Layer 2 blockchain makes it able to process transactions faster and at a lower cost than the Ethereum core network.

Furthermore, Polygon holds ambitions to evolve into an “internet of blockchains,” aiming to connect any Ethereum-compatible networks while boosting transaction speeds and reducing costs.

This association with Taurus reinforces Polygon’s aspirations and points to a positive direction for integrating blockchain technology into traditional finance.