Deutsche Bank-backed Taurus, Aztec unveil private token standard for financial institutions
Key Takeaways
- Taurus and Aztec unveiled an open-source confidential token standard for the tokenization of debt and equity.
- The private CMTAT security token standard uses zero-knowledge proofs to preserve customer privacy on blockchains.
Taurus SA, a digital asset infrastructure backed by major financial entities like Deutsche Bank, Credit Suisse, and StateStreet, has partnered with the Aztec Foundation to create a new open-source confidential token standard for debt and equity, a move aimed at bridging the gap between traditional finance and blockchain technology.
The collaboration is aimed at addressing a key hurdle to institutional adoption: privacy. With the new standard, financial institutions can issue tokenized assets on public blockchains while maintaining customer privacy, according to Taurus.
The token standard leverages zero-knowledge proofs developed by Aztec, which allow transactions to be verified without revealing the underlying data.
As noted, the open-source code, written in the Noir programming language, implements a private version of the CMTAT security token standard. With this implementation, details of ownership, transactions, and other sensitive information are hidden from the public blockchain.
“Tokenizing financial instruments on public blockchains unlocks immense potential. By enabling private, compliant transfers, we bridge the gap between institutional needs and decentralized technologies,” said JP Aumasson, Taurus’ Chief Security Officer.
