Mattereum, which proposes a blockchain-based platform for the tokenization of physical assets, has digitized a Stradivarius violin.
Mattereum, a London-based legal-tech startup that aims to tokenize and fractionalize real-world assets like real estate, art, and objects, recently published its whitepaper explaining its business model and the concept of tokenization. To better exemplify the whole process, the company decided to digitize a $9 million Stradivarius violin, which will be the first on-chain asset on Mattereum’s Smart Property Register. Thus, the object will be sold through multiple tokens via a crowdsale. Besides holding fractions of ownership rights, token holders will be able to form a governing committee that will decide how the instrument is used.
A Stradivarius violin is one of only 650 instruments made by the famous Italian luthier Antonio Stradivari, who lived in the 18th century. The price displayed by Mattereum makes its violin among the top 10 most expensive violins in the world. Tokenizing it is an interesting move, which will enable multiple investors to become owners of a unique instrument. The one billion Ethereum-based QELSTRAD tokens, which are backed by the violin, will be available for sale starting with March 2019.
But Mattereum’s blockchain-based tokenization platform can be used for any other asset.
“Mattereum has created the legal, technical and commercial infrastructure layer for on-chain property transfer and control. We can actually move assets in a way the law recognizes. Mattereum Protocol is the enabling technology for the real blockchain revolution,” the whitepaper reads.
As with the Stradivarius violin, governance will be applied to any underlying asset on Mattereum’s platform. For instance, users can decide a certain level of insurance for the asset, or, in the case of a musical instrument, can make sure that it is played in no less than ten concerts in three countries each year. The registrar who holds the tokens becomes the legal owner of the asset and has the right to enforce the agreed requirements.
Mattereum is contributing to the emerging security token industry through a new and daring approach. While it is too early to understand whether the company’s asset governance concept really works, the tokenization of real-world assets is known to improve trading conditions and increase liquidity.