AllianceBlock has joined forces with ARTBANX to bring art-backed financing to Web3, according to their announcement.
AllianceBlock is a decentralized and trustless infrastructure that provides gateways between TradFi and DeFi. The partnership with ARTBANX, a collection management system for collectors, art professionals, and financial institutions, is a first of its kind in the market and further bridges the gap between TradFi and DeFi.
The collaboration will serve to provide new ways for users to access liquidity for previously unbankable or inaccessible asset classes without the need for centralized entities.
Real-world asset-backed financing with physical artworks as collateral
AllianceBlock empowers traditional institutions to offer its lower-risk asset classes to the blockchain industry while gaining from the inherent benefits DeFi offers in the areas of privacy, decentralization and security.
ARTBANX’s art collection management, market data, and financing infrastructure enables art to become a bankable asset class, which will be expanded with a marketplace built on blockchain technology.
AllianceBlock, with Nexera Protocol’s infrastructure and NexeraID’s identity management toolkit, will allow the tokenization of physical artworks and facilitate a marketplace for art. This unlocks more possibilities for art collectors by allowing them to access the liquidity of their physical art through a platform for real-world asset-backed financing with physical artworks as collateral.
In 2022, the global art market grew by 29% year over year, growing by up to US$ 65.1 billion in aggregate sales of art, including a substantial growth of interest in digital art facilitated through NFTs topping at US$ 11.1 billion, according to a report by Art Basel and UBS.
The new platform offered by ARTBANX and AllianceBlock allows art collectors to access the liquidity of their assets while still maintaining digitally-represented ownership of the underlying. This also allows a broader audience to participate in the burgeoning art market, with more ways to provide liquidity and benefit from the tokenization of real-world physical assets.
The MetaNFT standard powered by AllianceBlock’s Nexera Protocol will allow ARTBANX’s Web2-based technology stack to seamlessly transition and integrate into Web3.
Informed decision-making in fractional art-backed financing
Mads Boie Thomsen, CEO & Co-Founder of ARTBANX, said: ”We are thrilled to announce our revolutionary partnership with AllianceBlock, which is set to transform the art market through the power of cutting-edge technologies. By leveraging AI, we have seamlessly integrated the transactional records of millions of artworks, providing collectors, investors, and art enthusiasts with unparalleled insights for informed decision-making in fractional art-backed financing. This partnership is a prime example of how DeFi can be used to provide alternative financing options and bring us one step closer to making art a bankable asset class.”
Matthijs de Vries, Founder and CTO at AllianceBlock, commented: “We are excited to partner with ARTBANX and take another step towards our mission to bridge TradFi with DeFi. The art market is a lucrative market and ripe for disruption. Using Nexera, we’re enabling a new financial model that preserves DeFi values; self-custody, transparency, decentralization, peer-to-peer, security and privacy while providing a more stable yield in a less volatile market. This partnership is a great example of how businesses can use our decentralized infrastructure to create new financial products and services. Partnering with ARTBANX, one of the leading collections management systems in the world is a big step forward for the industry.”