Altr to Launch Unique Digitisation & Collateralisation Feature for Luxury Collectibles
Since the soft launch of Altr’s fractionalisation functionality with the Rolex Daytona 6265, the team has been working diligently to enhance the user interface and experience of the platform, whilst developing innovative features. In this article, we’ll be sharing with you Altr’s latest features, Digitisation and Collateralisation, which will enable collectors to digitise their high-value collectibles, such as rare cars and vintage watches, and use them as collateral for loans in USDT. To verify the value and authenticity of each collectible, Altr has partnered with industry experts, our Oracles.
Let’s dig into why these features could disrupt the luxury collectibles space.
How it Works
To participate, collectors upload information about their collectible onto the platform, including descriptions and relevant documentation. The platform then arranges for the item to be shipped to an expert assessor, such as RMSotheby’s (for cars) or Monaco Legend Group (for watches), who thoroughly analyse and evaluate the item. A ‘liquidity score’ is assigned, based on the current market conditions and desirability of the collectible, determining the appropriate loan-to-value (LTV) ratio. The higher the liquidity score, the higher the LTV ratio.
Once the expert assessment is complete, the information is translated into a digital certificate, in the form of an NFT, which is stored on the collector’s profile on Altr. The physical collectible is then securely stored in a specialist freeport vault with expert maintenance to ensure its safekeeping.
Collectors can use the digital certificate as collateral to apply for a loan in USDT, with an LTV ratio ranging from 50 to 70 per cent based on the collectible’s liquidity score, based on initial analysis. The loan can be repaid over a period of three, six, or twelve months, with interest rates subject to market conditions.
If a collector fails to repay the loan, the collectible may be sold to repay the liquidity provider. Altr has relationships with traders and auction houses interested in purchasing collectibles at a discounted rate, ensuring a fast and efficient sale of the item.
Benefits for Collectors
This functionality provides collectors with a new way to unlock the value of their luxury collectibles, without having to sell them. In addition to using the digitisation functionality to obtain a loan, collectors can also use it as a secure and insured storage solution for their luxury collectibles. This is particularly useful for collectors who want to maintain the value of their items and ensure they are stored in a specialist, secure facility with expert maintenance. Collectors can access their physical items anytime by redeeming the digital certificate on the Altr platform.
This functionality provides collectors with a new way to unlock the value of their luxury collectibles, without having to sell them.
Benefits for the Industry
The Altr Digitisation & Collateralisation features are a game-changer for the luxury collectibles industry, providing collectors with a secure, transparent, and innovative way to unlock their high-value assets’ value whilst maintaining ownership. These features have the potential to revolutionise the industry, by opening up new opportunities for collectors to leverage their assets, and by making the process of buying, selling, and storing high-value items more secure, efficient, and streamlined.
Conclusion
The Altr Digitisation & Collateralisation features are an exciting development for the luxury collectibles industry. The team is actively working on finalising these functionalities for the platform’s official launch, alongside some fantastic partnerships and events that we can’t wait to share with the community very soon. ICYMI, we just announced the successful completion of Altr’s smart contract audit. Stay tuned for more updates!
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