NFTs
Historic Stradivarius Violin Backs $9M NFT Loan from Galaxy Digital
Digital asset company Galaxy Digital has provided a multi-million dollar loan to Yat Siu, co-founder of Animoca Brands, using a unique collateral combination of a tokenized Stradivarius 1708 violin and its tokenized counterpart in the form of a non-fungible token (NFT).
The violin was valued at more than $9 million. It has a rich history, including previous ownership by Russian Empress Catherine the Great.
The agreement could potentially set a precedent for the tokenization of physical assets, which could transform the collateral landscape and open up new avenues for investing in high-value items.
Galaxy Digital’s decision to tokenize the Stradivarius violin, a masterpiece created by the renowned Stradivari family, represents a fusion of the world of art and blockchain technology.
The physical violin will be stored in Hong Kong under strict security measures, ensuring its safety, while its digital counterpart facilitates the loan process.
The tokenization process involves converting a tangible asset into a digital token that can be traded on blockchain platforms, thus offering an innovative approach to asset management.
Several asset managers have shared optimistic predictions for tokenization.
In a report late last year, 21.co predicted tokenization scale to a $3.5 trillion market in a bearish scenario, or up to $10 trillion in a bullish scenario.