Nfts
Historic Stradivarius violin backs US$9 million NFT loan from Galaxy Digital
Digital asset company Galaxy Digital has provided a multi-million dollar loan to Yat Siu, the co-founder of Animoca Brands, using a unique collateral combination of a tokenized Stradivarius 1708 violin and its tokenized counterpart under the form of a non-fungible token (NFT).
The violin was valued at over $9 million. It has a rich history, including being the property of Russian Empress Catherine the Great.
The deal 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 designed by the famous Stradivari family, represents a fusion of the art world with blockchain technology.
The physical violin will be stored in Hong Kong under strict security measures, ensuring its safety while its digital counterpart will facilitate the loan process.
The tokenization process involves converting a tangible asset into a digital token that can be traded on blockchain platforms, providing a new approach to asset management.
Several asset managers have shared bullish predictions regarding tokenization.
In a report released late last year, 21.co predicted tokenization to reach a market of 3.5 trillion US dollars in a bearish scenario, or up to 10 trillion US dollars in a bullish scenario.