Swiss digital asset infrastructure provider, Taurus has collaborated with Aztec Foundation to launch the publication of an-source confidential token standard for debt and equity tokenization. Taurus confirmed the development in a blog post today stating that the launch will redefine tokenization on public blockchains.
It is worth noting that this initiative marks an important step forward in allowing financial institutions issue tokenized versions of financial instruments on public blockchains while also maintaining customers’ privacy. The smart contract is designed to empower asset issuers with control over the visibility of their assets on public blockchain. As revealed, this approach foster transparency while still maintaining compliance.
In addition, the initiative was built on Aztec’s state of art technology. As revealed, the contract also utilizes Aztec’s upcoming Layer-2 protocol powered by zero-knowledge (ZK) proofs. This technology is used to retain all the programmability and asset composability expected by customers on blockchains in a fully confidential manner.
It is worth noting that the code, which is written in Noir, implements a private version of the CMTAT security token. Noir is an open-source programming language designed for creating ZK applications, with a Rust-like syntax. This technological advancement in turn allows banks and financial institutions to securely and privately tokenize assets.
Taurus CSO reacts to the collaboration
Meanwhile, Taurus Chief Security Officer, JP Aumasson who led the initiative has given his reaction. He noted that the tokenization of financial instruments on public blockchain opens up opportunities for more development. According to him, Taurus also eliminated the disparity between institutional needs and decentralized technologies by enabling private and compliant transfers. He added that the project underscores the firm’s dedication to secure, innovative, and open solutions for digital finance.
The Executive Director and board member of Aztec Foundation, Arnaud Schenk also highlight the importance of the partnership. He highlighted the importance of privacy for financial institutions seeking to adopt blockchain technology at large.
However, it is worth noting that this development comes barely a month after Taurus partnered with Hashgraph, a non-profit organization. According to Taurus, the partnership was geared towards driving the global adoption of Hedera’s Distribited Ledger Technology (DLT).
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