The recent collapse of Silicon Valley Bank (SVB) and Credit Suisse has highlighted, once again, the vulnerabilities of centralized financial institutions. As investors and collectors look for alternative means to protect and grow their wealth, blockchain and decentralized finance (DeFi) are increasingly becoming attractive options.
There are numerous advantages of having assets on the blockchain versus in a centralized institution:
- Blockchain technology provides a higher level of security as it is on a distributed ledger maintained by a network of nodes, making it difficult for anyone to tamper with the data stored on it.
- Storing assets on the blockchain eliminates the need for intermediaries such as banks, brokers, or custodians. This reduces the costs associated with storing and trading assets and mitigates the risks associated with third-party custody of your assets.
- All transactions are recorded on a public ledger, making it easy to track the ownership and transfer of assets, reducing the risk of fraud.
Altr aims to revolutionize how luxury assets are stored and traded. For collectors, storing high-value collectibles on the blockchain through platforms like Altr provides several additional benefits:
Collectors can easily access liquidity and trade their digital certificates of ownership (NFTs) of the underlying asset, either in full or as a fraction of the item. This is particularly useful for collectors who want to maintain the value of their items and ensure they are stored in a specialized, secure facility with expert maintenance. However, collectors can access their physical items anytime by redeeming the digital certificate on the Altr platform.
Altr’s Digitisation & Collateralisation features provide collectors with a new way to unlock the value of their luxury collectibles without selling them. This functionality allows collectors to digitize their high-value collectibles and use them as collateral for loans in USDt (digital dollar). This also offers a secure and transparent process for storing and verifying the authenticity of collectors’ existing high-value items.
The fragility of centralized financial institutions will continue to drive investors and collectors to explore alternative avenues to safeguard wealth. As Decentralized finance (DeFi) and blockchain technology gain prominence as viable solutions, Altr aims to be at the forefront of providing users with secure and innovative ways to store their luxury assets.
Stay tuned!
