Galaxy Digital Showcases RWAs With $9 Million Violin Loan

Galaxy Digital (GLXY), led by Mike Novogratz, made headlines again this week after issuing a multi-million dollar loan to the founder of Animoca Brands, Yat Siu. The loan was collateralized by a 300-plus-year-old violin that was auctioned for $9 million just last year.

So… what’s a rare violin and loan between two billionaires got to do with crypto?

It’s because the violin was tokenized. Both the physical violin and its digital representation in the form of a NFT are being used as collateral.

The Benefits of RWA Tokenization:

• Unlocks Liquidity: The violin, traditionally an illiquid asset, can now potentially be fractionally owned by multiple investors through the NFT.

• Improves Loan Terms: Compared to using volatile digital assets like Bitcoin, the tokenized violin offers a more stable form of collateral, potentially leading to better loan terms.

• Expands Investment Opportunities: Tokenization opens doors for new investment opportunities in unique, high-value art or historical artifacts.

In Galaxy Digital’s case, it was a good publicity move to showcase the value of Real World Asset (RWA) tokenization, a conversion service that the company hopes will one day become a real revenue driver.