Capital markets News

Temenos banking software now supports digital assets

security tokens digital asset trading

Today banking software provider Temenos with a market capitalization of CHF 10 billion ($11 bn), announced that it integrated Temenos Transact with Taurus SA, the Swiss digital asset infrastructure provider. The solution supports cryptocurrencies, Decentralized Finance (DeFi), all types of tokenized assets as well as digital currencies.

The startup recently received a securities license from FINMA, the Swiss regulator and launched the Taurus Digital eXchange (TDX) last month. At the time, Taurus said it was onboarding several banks, including Arab Bank Switzerland, FlowBank, Hypothekarbank Lenzburg and SEBA Bank, as well as real estate firms Investis Group and Stoneweg. Taurus provides digital asset custody, an institutional crypto-asset trading desk, and the ability for banks to create new tokenized assets. 

“We believe that digital assets represent new opportunities for banks and wealth managers,” said Alexandre Duret, Product Director at Temenos, noting the investor awareness in cryptocurrency performance as an asset class.  

“But other applications of blockchain technology, such as tokenized securities, have the potential to transform the value chain with simpler issuance procedures, greater liquidity and real-time settlement.” He continued, “By joining forces, we can help banks to bridge the gap between traditional investments and digital assets.”

The integration is through the Temenos Marketplace, which includes 50 providers such as Wise (formerly TransferWise), Plaid and Equifax.

Taurus is keen “to make available our technology to Temenos’ client base of more than 3,000 banks and financial institutions worldwide,” said Sébastien Dessimoz, Taurus Managing Partner. “Taurus end-to-end platform will allow Temenos clients to manage any digital asset and create products in a couple of clicks.”

Last year Taurus raised a Series A north of $10 million, led by Arab Bank Switzerland.

Many banks have recently entered the fray offering cryptocurrency related investments to wealthy clients, including Goldman SachsMorgan StanleyBBVA and DBS Bank. At the same time, numerous banks have initiatives to offer digital asset tokenization platforms for more conventional assets such as equitydebtreal estate and funds.