Asset Tokenisation: Migrating Traditional Wealth into the Digital Space

Everyone under the sun knows it’s been a turbulent few months in the crypto markets. We have seen an erosion in the crypto market cap and a drop in TVL across DeFi protocols. Considering the prevailing bearish sentiment coupled with the broader macroeconomic outlook, the funding outlook for blockchain-based projects looks uncertain. Despite this, developer activity has continued to hold strong and projects will have to demonstrate inherent value on a robust infrastructure to garner true adoption and backing.

Projects designed to enhance traditional ecosystems are best equipped to outperform the myriad of blockchain projects out there. We think Altr fits the bill, and this blog post will seek to articulate exactly why that is. Let’s dig in 👇

A large chunk of the world’s wealth today is locked in illiquid assets, which include pre-initial IPO stocks, real estate, private funds, physical art, etc. There are a multitude of reasons that drive asset illiquidity, ranging from limited affordability to regulatory hurdles, limited expertise or access. This is especially relevant to luxury collectibles (Ahem…).

The concept of fractionalisation already addresses some of these issues in traditional markets through, for instance, ETFs and REITs. However, the key limitation of traditional fractionalisation is that the impact can only be seen in public markets, which are already fairly efficient, and not in private markets. Furthermore, matching capital with opportunities in private markets can involve several steps, often leading to suboptimal customer experience and cost structures.

On-chain asset tokenisation changes the game, and there is increasing evidence to suggest its proliferation. Increased recognition of on-chain tokenisation by authorities is leading to the tokenisation of more non-conventional illiquid assets, like crops, farms, and exotic wines. A recent report by BCG projects conservatively that on-chain asset tokenisation could be a $16.1 trillion opportunity by 2030 (best-case $68 trillion). As such, trusted on-chain asset tokenisation is a strong catalyst for migrating traditional wealth into the digital world.

Fewer markets have a higher concentration of traditional “old school” wealth than luxury collectibles. Altr has a big role to play in enhancing this traditional ecosystem, in which some assets change ownership less than once in a blue moon. As trust plays a crucial role, Altr will only work with world-class Oracles known and respected in the luxury ecosystem. Meet one of them here, with others to be announced soon.

So what are the key benefits of on-chain asset tokenization? Let’s break it down…

• Improves affordability by enabling fractional asset values of high-ticket items
• Enables borderless accessibility by listing illiquid assets
• Unlocks liquidity and flexibility by enabling trading in secondary markets
• Streamlines transaction efficiency by ensuring a single point of KYC by linking users’ wallets to the blockchain without going via 3rd party custodians etc.
• Enforces transparency by offering clear transaction history and record of ownership.

All of these features will be available on the Altr marketplace.

Despite the recent market turmoil, we are excited about the opportunities ahead and are highly focused on carving out our piece of the asset tokenisation pie that is set to disrupt illiquid markets. When it comes to luxury collectibles, Altr is looking to alter this space (pun intended), in a manner that stands to benefit the buyer as well as the seller. We hope that you are as excited as we are!

Altr has just launched its IG page — check it out and give it a follow for sneak peeks of the marketplace and product launches in the coming weeks.

For all of our other socials, have a look here: https://linktr.ee/Lucidao

Brace yourselves for disruption 🚀