VanEck Unveils Self-Custody NFT Platform SegMint for Tokenized Asset Ownership
Summary:
Asset management firm VanEck aims to launch a self-custody nonfungible token (NFT) platform, SegMint, to investigate tokenized asset ownership opportunities. The firm aims to build on the success of its Bitcoin ETF, leveraging the expertise of Matthew Bartlett, head of VanEck's NFT and Web3 community. SegMint will allow users to 'vault' and fractionize digital assets via tradable keys. The platform also has long-term plans to partner with other blockchain-based platforms to tokenize real-world assets like vintage wines, luxury watches, and real estate. VanEck's cryptocurrency ETFs continue to attract significant investments.
VanEck, a renowned asset management firm, plans to extend its recent success in launching a Bitcoin ETF in the U.S. by establishing a self-custody nonfungible token (NFT) platform. The purpose of the platform is to investigate the possibilities of tokenized asset ownership. In an exclusive interview with Cointelegraph, Matthew Bartlett, head of VanEck's NFT and Web3 community, discussed the forthcoming launch of SegMint at NFT Paris. SegMint, the new NFT management platform, enables users to secure and fractionize digital assets by issuing keys that will be exchangeable on the proprietary in-house market.
VanEck, known as the first U.S. asset manager to file for a Bitcoin ETF in 2017, has earned a reputation as a traditional financial firm venturing into cryptocurrency ETFs and digital asset ownership. For Bartlett, who has also been an active participant in the NFT space, overseeing the firm’s NFT and Web3 development fell within his realm thanks to his personal interest in the field. With a career spanning almost two decades, split between Franklin Templeton and VanEck, he combined his professional experience and passion for NFTs to establish an in-house platform for NFT ownership and digital asset fractionation.
Bartlett began engaging with NFTs in 2017 by buying, minting, and auctioning in Decentraland. He also spearheaded VanEck's initial foray into the NFT sphere through a free NFT giveaway, which served as a physical ticket to the bell-ringing ceremonies at the New York Stock Exchange and NASDAQ. Over the last seven years, he has been instrumental in building a sturdy digital asset team, primarily comprised of cryptocurrency investment analysts and digital asset product managers.
In the increasingly crowded NFT platform landscape, Bartlett aimed to create a platform predominantly focused on co-ownership and fractionation of assets with SegMint. Identifying the existing problems with other platforms, he designed SegMint to alleviate issues such as custodial reliance and the loss of additional benefits like airdrops or token-gated access.
SegMint preserves the self-custody of users' digital assets by offering vaults owned by their Web3 wallets. This allows users to manage all utilities, including airdrops and gameplay. Once an asset is secured in a vault, users can mint any number of SegMint keys. These keys are fungible replicas of what's held in the users' vaults, and they're required in their entirety to unlock the vault.
As of February 28, SegMint has started operation and users are now required to undergo a KYC procedure to create vaults, keys, and to launch NFTs. Bartlett anticipates the platform will appeal to owners of CryptoPunks, Squiggles, and Pudgy Penguin NFTs to fractionize their assets, thereby democratizing access to premium collections at a more affordable price point for people all over the world.
In the long run, SegMint plans to partner with other blockchain-based platforms for tokenizing real-world assets such as vintage wines and luxury watches. Bartlett views real estate tokenization as a highly promising area for future fractionalized ownership.
A prospective platform might leverage blockchain technology to "vault" a holiday property, creating 52 keys – one for every week of the year – that could be traded on an open marketplace. Bartlett believes this concept could create disruption in the timeshare and Airbnb sectors.
In conclusion, while such application can potentially be expanded to high-value assets like private jets or collectible cars, Bartlett gauges that realizing these use cases might take several years.
Meanwhile, since it was approved by the U.S. Securities and Exchange Commission in January 2024, VanEck's Bitcoin ETF has drawn over $272 million in investments. Simultaneously, VanEck Europe’s Bitcoin and crypto exchange-traded products have also been generating interest from investors eager to diversify their portfolios and gain exposure to the cryptocurrency sector.
Published At
3/4/2024 2:15:10 PM
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