Nfts
Mike Novogratz’s Bitcoin Bull Galaxy Digital tokenizes $9 million antique Stradivarius violin into NFT for loan collateral
June 6, 2024 4:42 a.m. | 1 minute reading
Cryptocurrency investment company Digital Galaxy announced the tokenization of a nearly 300-year-old vintage violin once owned by Russian royalty. The instrument will be used as collateral to secure a loan.
What happened: The company owned by the crypto billionaire and Bitcoin (CRYPTO: BTC) bull Michael Novogratzminted a non-fungible token of “Empress Caterina,” an 18th-century Stradivarius violin, valued at approximately $9 million, according to a press release.
The NFT was created exclusively for the financing transaction between Animoca Brands co-founder Yat Siu and Galaxy. Siu purchased the iconic instrument in 2023.
The NFT was created on Ethereum (CRYPTO: ETH) blockchain, and Featured on the NFT marketplace Open Sea. Galaxy has made it clear that NFT will not be available on the secondary market.
Why is this important: The tokenization of real-world assets is emerging as one of the hottest stories on Web3. Under this framework, off-chain assets such as bonds, real estate, commodities and art can be brought onto the blockchain rails, paving the way for a new set of use cases for finance traditional and decentralized.
In the aforementioned case, tokenization created economic value of the valuable asset without selling it. At the same time, he helped preserve the legacy by immortalizing it in the form of an NFT.
As of this writing, the actual tokenization industry has over $4 billion in investments, according to at DeFiLlama.
Read next: Shiba Inu’s Shytoshi Kusama Indicates ‘Massive Plans’ for Crypto Project in Response to Ethereum Creator Vitalik Buterin
Photo via Shutterstock
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