VP Bank is the first in Liechtenstein to symbolize a work of art and claims it “opens the door” to more asset management opportunities in space.
As tokenization continues to illuminate the world of art and other possibilities, VP Bank of Liechtenstein has joined the country’s national blockchain registry with the aim of offering clients a wider range of digital solutions. digital assets.
The regulation introduced last year, commonly known as the Blockchain Act, requires any business or blockchain entity offering cryptocurrencies to register for approval. The measure was hailed as a bold and broad framework, making it possible to symbolize everything from music and software rights to more tangible brands, patents and products, while providing a level of legal certainty for suppliers wishing to extend asset services. digital.
People approved by the registry can become a token creator and custodian. VP Bank says it is the first institution nationwide to tokenize a physical work of art on the blockchain since gaining its approval, and the first to offer a host of extensive services to working owners and administrators. in the art market.
Like many of his private banking peers, he wants to strengthen his credibility in asset tokenization and create more ownership opportunities in the global $ 50 billion art market.
Leonardo da Vinci’s “Salvator Mundi” is the most expensive purchase to date, reaching $ 450 million in 2017. Tangible asset transactions of this magnitude come with their own challenges, including a limited number of potential owners, high administrative costs and headaches associated with transportation. and the storage of works of great value.
VP CEO Paul Arni said the “digital mapping” of the bank’s real assets is a response to a growing need, adding, “I am delighted that we are playing a pioneering role in this area. ”
In practice, this “mapping” gives the bank the power to digitally register the ownership rights of real assets on the blockchain and store them as tokens in an efficient and cost effective manner. The benefits for art galleries, museums and foundations come from giving clients a unitary view of their assets and full transparency of all shared property interests which are easily visible in their asset statements. or their online banking, VP said.
Those who embrace the tokenization of authenticated art on the blockchain believe that it will be easier for customers to own fractions of works and collections, bring more art to the market, and generally broaden its appeal as a asset class. The industry has traditionally operated with more opacity than regulators would like, exposing the market to counterfeits and fending off money laundering issues. On the flip side, the non-fungible token boom at the start of the year, capped by Christie’s $ 69 million NFT sale, suggests that the early hype has attracted its fair share of speculators and crypto-showboaters. , and needs to be better accepted and understood.
More mundane, VP Bank says having regulated oversight of tokenized assets will help its core business with intermediaries – for example, in succession planning when real assets need to be split.
“We are acting as pioneers and creating new secure asset management opportunities for our clients,” said Thomas von Hohenhau, Head of Client Solutions. “The symbolic economy also underlines the systematic and forward-looking orientation of our range of services,” said Thomas von Hohenhau, Head of Client Solutions. he said.