By CoinGape

Cryptocurrency firm, Galaxy Digital has tokenized a 1,708-year-old violin to back a multimillion-dollar loan given to Animoca Brands’ Yat Siu. The antique violin was previously owned by Catherine The Great, a Russian Empress with its value in millions. Galaxy Digital which seeks to expand its business drive to new fronts tokenized the musical instrument amid the drive in the field.

Galaxy Digital Tokenizes Violin 

The company’s banking division, Galaxy Global Markets seeks to reach a new base from this loan leveraging on the surge in digital assets. The company issued a multi-million dollar loan to Animoca Brand’s Yat Siu, Bloomberg reported. 

Although the exact loan amount was not disclosed, both companies noted that it was millions. According to the agreement, Galaxy Digital will hold the tokenized violin as a non-fungible token (NFT) with the instrument as a direct collateral for the loan. A Hong Kong custodian will hold the antique violin will hold the antique violin with parties required to sign off a removal. 

Yat Siu acquired the violin in 2023 from an auction of over $9 million showing slight insights into the loan value. Galaxy Digital continues to improve its business frontiers with the firm improving tokenization assets. The adoption of blockchain technology by traditional firms has led to wider development toward use cases. Thomas Cowan Galaxy Digital’s Vice President of tokenization added that tokenization items create an opportunity to lend assets without reliance on Bitcoin and Ethereum.

The Growth Tokenization 

Tokenization is the process of representing assets on the blockchain. These assets are usually traditional assets like stocks and bonds. As loans tied to crypto assets attract huge collateral because of the volatility of assets, tokenization solves this problem by pivoting traditional assets on-chain. 

In recent times, the urge for tokenization ticked upwards with several institutional firms rolling out initiatives. Last year, Standard Chartered released an institutional-grade platform as more brands jumped on the tokenization drive.

Also Read: Binance Not Liable for User’s $1M Loss, Co-Founder Claims

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David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: CoinGape