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Historic Violin Tokenized for Multimillion-Dollar Loan by Galaxy Digital

Key Takeaways

  • Galaxy Digital and Yat Siu have tokenized a 1708 Stradivarius violin, using it as collateral for a multimillion-dollar loan;
  • The violin, once owned by Russian Empress Catherine the Great, was purchased by Siu in 2023 for over $9 million;
  • Tokenizing physical assets like this violin could transform crypto lending by offering more secure options against volatile digital assets.
Historic Violin Tokenized for Multimillion-Dollar Loan by Galaxy Digital

Galaxy Digital, led by Michael Novogratz, and Animoca Brands co-founder Yat Siu converted a 1708 Stradivarius violin into a non-fungible token (NFT) and used it as collateral for a loan.

It was reported on June 4 that Galaxy Digital provided a multimillion-dollar loan to Siu, who offered his 316-year-old Stradivarius violin as collateral.

The historic instrument was tokenized, and both the NFT and the physical violin will remain with Galaxy Digital until the loan is repaid. The actual violin will be stored with a Hong Kong-based custodian until Galaxy Digital and Siu authorize its release.

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This violin has a rich history, as documented by the auction house Tarisio. It was initially acquired by the Russian ambassador to Venice for Empress Elisabeth Petrovna, who ruled the Russian Empire from 1741 to 1762. After her death, the violin was inherited by Catherine II, also known as Catherine the Great.

Yat Siu purchased the violin for more than $9 million at an auction in 2023.

Thomas Cowan, vice president of tokenization at Galaxy, highlighted that the potential to tokenize physical assets could significantly change crypto lending. He noted that because digital assets are volatile, the collateral requirements are typically high. However, they can offer larger loans by tokenizing physical assets like this violin.

Using the historic Stradivarius violin as collateral for a loan highlights the adaptability of NFTs and suggests a future where more physical assets are incorporated into the crypto economy.

In other news, soccer star Cristiano Ronaldo has recently released his fourth collection of NFTs, showcasing the key moments from his career.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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