Swiss infrastructure provider Taurus collaborates with Aztec to create an open-source confidential token standard, enabling private asset tokenization on public chains.
By Temitope Olatunji
Edited by Marco T. Lanz
Updated
3 mins read
Swiss digital asset infrastructure provider Taurus has joined forces with Aztec Foundation to launch a new open-source confidential token standard for debt and equity. The aim of this initiative is to allow institutions to tokenize financial assets like debt and equity on public blockchains while ensuring user privacy.
The Taurus team explained that the new token standard solves a key issue related to privacy and regulatory compliance when using public blockchains. It enables financial institutions to securely tokenize assets while complying with regulatory requirements.
“This advancement enables banks and financial institutions to tokenize assets securely and privately, ensuring that applicable compliance requirements can be built in and automated.”
The Chief Security Officer at Taurus, JP Aumasson, believes that bringing financial assets to public blockchains creates new opportunities by connecting institutional requirements with decentralized systems.
The project ensures transaction privacy by using Aztec Network’s layer-2 protocol and zero-knowledge proofs. Additionally, the open-source code, written in the Noir programming language, enables a confidential version of the CMTAT security token. This ensures that ownership, transaction details, and other private data remain hidden on the blockchain.
The Executive Director and board member of the Aztec Foundation, Arnaud Schenk, commented that financial institutions like banks and investment firms are unlikely to widely adopt blockchain without strong privacy measures. He further explained that the partnership between the two firms aims to address these issues by providing a solution that combines blockchain’s advantages with compliance with the strict standards of traditional finance.
“Aztec has been building cryptographic tools to bring real-world assets onto public blockchains since 2017, and we are thrilled to see Taurus’ successful leveraging of Noir and of Aztec’s Layer-2,” Schenk noted.
Taurus announced on February 13 that its custody service, Taurus-PROTECT, and its platform for digital asset issuance, Taurus-CAPITAL, are now compatible with the Solana network. It explained that this integration would allow banks and asset issuers to safely store and stake Solana-based tokenized assets through Taurus-PROTECT and create customizable digital assets on Solana using token extensions via Taurus-CAPITAL.
“With this integration, our banking and enterprise clients can access an advanced platform to tokenize assets like equity, debt, structured products, funds, tokenized deposits, and CBDCs, while minimizing costs and operational complexities,” Jürgen Hofbauer, Head of Global Strategic Partnerships at Taurus, stated.
The digital asset provider has also formed a partnership with The Hashgraph Association (THA) to expand the use of Hedera’s distributed ledger technology (DLT). This partnership will bring HBAR, Hedera’s digital currency, and the Hedera Token Service (HTS) to Taurus’ platform.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.
