Art is rapidly becoming a bankable asset class as a result of the development of cutting-edge technology in blockchain, enabling artists and traders to uncover the asset’s worth and empower financial choices when trading art.
Interestingly, AllianceBlock, a platform that creates decentralized and trustless gateways across Traditional Finance (TradFi) and Decentralized Finance (DeFi), announced on January 20 a collaboration with ARTBANX, a customizable and secure collection management solution for collectors, art experts, and financial institutions.
The art market’s expansion with a blockchain-based marketplace is made possible by ARTBANX’s collection management, market data, and finance infrastructure.
Meanwhile, AllianceBlock will enable the tokenization of physical artworks and support an art market using Nexera Protocol’s infrastructure and NexeraID’s identity management software. The partnership opens up further opportunities for art collectors by giving them access to the liquidity of their physical art through a platform for real-world asset-backed financing using tangible artworks as security.
Matthijs de Vries, Founder and CTO at AllianceBlock, stated:
“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.”
Digital art tops $11 billion in 2022
According to the most recent Art Market 2022 report that Art Basel and UBS published, the global art market expanded by 29% year over year, increasing to up to $65.1 billion in aggregate art sales. This growth was partly driven by a significant increase in interest in digital art made possible through non-fungible tokens (NFTs), which topped $11.1 billion.
The tokenization of real-world tangible assets increases liquidity and opens the market to a broader audience. This new platform will provide art collectors with an easier means to access their assets’ liquidity while still retaining digitally represented ownership of the underlying, and it will do so by using the technological stack of ARTBANX and the infrastructure of AllianceBlock.
Moreover, by adopting the MetaNFT standard enabled by AllianceBlock’s Nexera Protocol, ARTBANX’s Web2-based technology stack will be able to migrate and integrate into Web3, allowing the company to take full use of the advantages presented by blockchain technology and third-generation NFTs.
Leveraging the blockchain infrastructure provided by AllianceBlock and Nexera Protocol is expected to decrease the time to market for this new platform while significantly lowering the cost of development and resources.