Galaxy Digital Tokenizes Ancient Violin to Back Millions of Dollars in Loans
Cryptocurrency company Galaxy Digital tokenized a 1,708-year-old violin to back a multimillion-dollar loan to Animoca Brands’ Yat Siu. The antique violin previously belonged to Russian Empress Catherine the Great, worth millions. Aiming to expand its business push to new fronts, Galaxy Digital tokenized the musical instrument amid the on-the-ground push.
Galaxy Digital Tokenizes Violin
Galaxy Global Markets, the company’s banking division, aims to reach a new base from this loan by taking advantage of the increase in digital assets. The company made a multimillion-dollar loan to Animoca Brand’s Yacht Siu. Bloomberg reported.
Although the exact loan amount was not disclosed, both companies noted that it was in the millions. Under the agreement, Galaxy Digital will hold the tokenized violin as a non-fungible token (NFT) with the vehicle as direct collateral for the loan. A Hong Kong custodian will hold the antique violin with the parties required to sign the move.
Yat Siu bought the violin at auction in 2023 for over $9 million, which gives a small idea of its credit value. Galaxy Digital continues to expand its business frontier as the firm improves its tokenization assets. The adoption of blockchain technology by traditional companies has led to a broader development of use cases. Thomas Cowan, Galaxy Digital’s VP of tokenization, added that tokenization elements create the opportunity to lend assets without relying on Bitcoin and Ethereum.
Growth Tokenization
Tokenization is the process of representing assets on the blockchain. These assets are usually traditional assets such as stocks and bonds. Since loans tied to crypto assets take large collateral due to the volatility of assets, tokenization solves this problem by transferring traditional assets on-chain.
Recently, the push for tokenization has increased with many corporate firms launching initiatives. Last year, Standard Rented As more brands join the tokenization push, they have released an enterprise-level platform.
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David is a financial news writer with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has a talent for keeping up with breaking news. Staying on top of trends, David is knowledgeable about regulations, partnerships, crypto assets, stocks, NFTs, etc. He reported in various fields such as. Away from the financial markets, David cycles and rides horses.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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