Altr Turns to Blockchain for Liquidity Solutions in Luxury Collectibles Market
Summary:
Altr, a Polygon-based lending platform, plans to use blockchain technology to address liquidity problems for luxury item collectors. According to Altr's adviser Davide Rovelli, by digitizing their assets, collectors can tokenize their items and use them as collateral for on-chain loans. This method provides enhanced security, instant liquidity, and higher levels of transparency. Rovelli also indicates that Web3's focus on transparency and security aligns with the needs of the luxury goods industry, as it can verify the authenticity of high-end products.
Altr, a lending platform built on Polygon, is employing blockchain technology to help resolve liquidity difficulties often encountered by individuals attempting to liquidate their luxury collectibles. Altr's advisor, Davide Rovelli, explained to Cointelegraph that collectors often face challenges when attempting to monetize their items. This is mostly due to dealers making under-valued offers, as they need to ensure their own profit margins when they sell on these items. Conversely, auctions can deliver better rates but are time-consuming and involve numerous third-party costs.
Rovelli envisions blockchain as a potential solution to these issues. He suggested that collectors could digitize their collections, establishing a digital ownership certificate on the blockchain. These digitized collectible assets can then serve as collateral for swiftly acquired on-chain loans.
“The blockchain provides access to an on-chain liquidity never seen before in the collectibles' traditional market. This integration of the blockchain into the collectible world opens the sector to crypto holders, crypto funds, and VCs,” Rovelli explained.
The act of tokenizing real-world assets (RWAs) has become a focal point in crypto-related discussions. Expressing his views on tokenization, Rovelli emphasized that it adds an unprecedented level of transparency to an industry that has traditionally lacked it.
He further stated that once assets have undergone certification, valuation, and storage, they can be transferred onto the chain. This not only enhances security, but also provides instant liquidity, as the digital tokens representing these assets can be used as collateral for blockchain loans. Rovelli strongly believes that this method releases the economic potential of luxury goods and marks a significant shift in the management of luxury assets in the digital age.
Rovelli also contended that Web3—with its focus on transparency and security—resonates with the requirements of the luxury goods industry. Web3 can help verify the authenticity of premium products and trace their lineage. According to Rovelli, a system powered by Web3 could make fabricating luxury goods virtually impossible.
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Published At
2/20/2024 11:08:06 AM
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