Global cryptocurrency asset management company Galaxy Digital has announced the tokenization of a Stradivarius violin, which has a history of over 300 years, accelerating the development of a new economic model for tokenizing unique assets.
According to Bloomberg, the Stradivarius violin was made in 1708 and is worth approximately $9 million. It was formerly owned by Empress Yekaterina of Russia and is currently owned by Yat Siu, co-founder of Animoca Brands, who acquired it at an auction last year for over $9 million.
Source: opensea
This time, Siu used the valuable violin as collateral to borrow “millions” of dollars from Galaxy Digital. Subsequently, Galaxy Digital collaborated with Siu to tokenize the violin through its subsidiary, GK8. Galaxy Digital stated:
“Tokenizing physical assets such as artwork or instruments allows us to offer our clients assets with higher volatility than cryptocurrencies and provide more loans.”
Galaxy Digital CEO Michael Novogratz stated:
Meanwhile, Galaxy Digital’s Vice President of Tokenization, Thomas Cowan, stated that by tokenizing physical assets such as artwork or instruments, the company can offer clients more loans with higher volatility than cryptocurrencies.
Previous tokenized assets by financial institutions were mainly focused on “bonds” and “securities”. Although there are many projects on the blockchain that promote tokenization of physical assets such as real estate and watches, these projects do not have sufficient endorsement. The tokenization of the legendary Stradivarius violin by Galaxy Digital is undoubtedly the most prominent tokenization in history.
Investing in cryptocurrencies or artwork
On the other hand, although Yat Siu and Galaxy Digital did not specify the exact amount of the loan, Siu stated that he may use the loan to invest in cryptocurrency-related projects or artwork.
As for why this significant violin is being tokenized, Siu stated:
Tokenizing the violin may be one of the answers. Siu also expressed his enthusiasm for helping to pioneer the economic model for unique assets.
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