Digital asset company Galaxy Digital provided a multi-million dollar loan to Yat Siu, co-founder of Animoca Brands, using a unique collateral combination of tokenized 1708 Stradivarius violins and corresponding non-fungible tokens.
This violin, worth more than $9 million, boasts a rich history, including being owned by Russian Empress Catherine the Great. This transaction could set a precedent for the tokenization of physical assets, potentially revolutionizing collateralization and opening up new investment opportunities in high-value items.
Galaxy Digital’s decision to tokenize Stradivarius violins made by the revered Stradivari family unites the world of art and blockchain technology. The physical violin is stored safely in Hong Kong, while the digital violin facilitates the lending process.
Tokenization involves converting tangible assets into digital tokens that can be traded on blockchain platforms, providing a new approach to asset management. Several asset managers are optimistic about the future of tokenization.
According to a report by 21.co late last year, the tokenization market could expand to $3.5 trillion in a downside scenario and up to $10 trillion in an upside scenario.
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