Historic Stradivarius violin backs US$9 mln NFT loan by Galaxy Digital

Digital asset company Galaxy Digital provided a multimillion-dollar loan to Animoca Brands co-founder Yat Siu using a unique collateral combination of a tokenized 1708 Stradivarius violin and its tokenized counterpart in the form of a non-fungible token (NFT). ).

The value of the violin is over 9 million dollars. It has a rich history, including its previous ownership by Russian Empress Catherine the Great.

The deal could potentially set a precedent for the tokenization of physical assets, transforming the collateralization landscape and opening up new avenues for investing in high-value items.

Galaxy Digital’s move to tokenize the Stradivarius violin, a masterpiece crafted by the famous Stradivari family, represents the merging of the art world with blockchain technology.

The physical violin will be stored under strict security measures in Hong Kong, thus ensuring its safety, while the digital violin will facilitate the loan process.

The tokenization process involves converting a tangible asset into a digital token that can be bought and sold on blockchain platforms, thus offering a new approach to asset management.

Several asset managers have shared bullish predictions for tokenization.

In a report published late last year, 21.co predicted that tokenization would scale up to $3.5 trillion in a bear scenario or $10 trillion in a bull scenario.