Swiss FINMA gives green light to this first-ever digital assets initiative

• FINMA approved Taurus to extend its TDX trading platform to retail investors investing in tokenized securities
• Expansion allows retail investors to participate in capital raises and secondary market activities

The Swiss Financial Market Supervisory Authority (FINMA) has approved Taurus, a digital asset infrastructure provider for banks and institutions, to extend its TDX trading platform to retail investors. This marks a significant step towards democratizing access to digital assets and tokenized securities, potentially transforming the landscape of private markets.

Core functionalities of the TDX platform

Swiss regulator approves its first retail tokenised securities trading platform. Taurus, a digital asset infrastructure for banks and institutions, is now extending its TDX trading platform to retail investors. “Private markets 2.0 shall be digitised, so that buying a private…

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Taurus, backed by Deutsche Bank, operates the TDX marketplace where transactions can be conducted not only in cryptocurrencies but also in traditional fiat currencies like Swiss francs, Euros, and U.S. dollars. The platform has already benefitted several Swiss companies by issuing tokenized shares, indicating a growing trust in Taurus’s capabilities. 

Among these companies are notable names like Investis, la Mobilière, Qoqa, Structured Commodity & Corporate Finance (SCCF), Swissroc, and Teylor, a fintech lending firm collaborating with Taurus for issuing tokenized securities for professional investors.

Introducing a broader sense of accessibility

Previously, TDX was exclusively for professional or qualified investors. However, following the latest FINMA approval, Taurus can now extend its services to the broader public. Retail investors can now participate in capital raises for unlisted companies in a primary market setting and engage in secondary market activities. This extension not only broadens the market reach, but also enhances the liquidity of digital securities.

As for now, TDX primarily targets Swiss residents, but there is potential for expanding access to more investors, subject to specific compliance requirements depending on the trading segment and the issuer. This approach ensures that regulatory standards are met while making tokenized securities available to a wider investor base.

FINMA’s regulatory protocol on digital assets

The approval by FINMA is a testament to Switzerland’s stance on digital assets. The decision to allow the trading of tokenized securities on a retail level plays a pivotal step toward a tokenized economy. Leo Mizuhara, the CEO of Hashnot, a decentralized digital asset management platform, had some enlightening opinions on this event. According to Mizuhara,

“FINMA is a very thorough regulator and not an easy regulator to get approvals. But, the regulators are forward-thinking when it comes to digital assets.”

However, experts note that for retail users, the significance may not be as pronounced, as most interested investors likely already had access to such financial products through traditional means.

Future of tokenized securities: Success or failure?

Taurus’s expansion into the retail sector represents a notable shift in the digital assets market, potentially making way for larger adoption and integration of tokenized securities in mainstream investment portfolios. This may have several implications and may impact the economic landscape for the better. However, it’s still too soon to gauge the potential benefits or any measurable effect.

Finally, a new era in the digitalization of the private market awaits, making investment in tokenized securities as straightforward and accessible as online shopping.