Musical Instrument NFT Will Secure Galaxy Digital’s Loan; How?

• 1 Russian Empress Catherine II’s violin will feature in an NFT by Galaxy Digital and Animoca Brands.
• 2 The newly developed NFT would help Galaxy Digital to secure the loan.   
• 3 Yat Siu, the co-founder of Animoca Brands owned the Stradivarius violin as collateral.

Michael Novogratz’s Galaxy Digital and Animoca Brands transformed the 316-year-old violin into NFT. A 1708 Stradivarius violin belonging to Russian Empress Catherine II would be used to secure loans.

Galaxy Digital Transformed 316-Year-Old Violin in NFT 

On June 04, Galaxy Digital borrowed a specific amount of funds from Siu, who owns the violin as collateral. Galaxy constructed an NFT from the iconic musical instrument and held the same until Siu settled the loan.

Galaxy and Siu, both declined to reveal the exact amount of the loan, but it is supposed to be in Millions. TOBTC shared the transformation news over X along with uncovering the history of the 316 years old violin history.

At present, the violin is valued at approximately $9 Million and secured its position as one of the highest-profit tokenization on record. Preserving the legacy of one of the most iconic musical instruments and adding value to real-world assets are recorded as key motives behind the act.

Currently, the violin is held by a custodian in Hong Kong and requires a sign from both parties for the removal. Moreover, Galaxy’s vice president of tokenization, Thomas Cowan expressed that tokenizing physical assets might transform the crypto landscape.

What Does OpenSea’s Data Say About the New Member? 

Uncovering the 1708 Stradivarius violin history, it belonged to Russian Empress Catherine the Great. After the death of Empress Elisabeth Petrovna, the Violin was handed over to Catherine II.

Afterward, a musical instrument auction house was opened for auction. Animoca Brands co-founder acquired the violin in 2023 in an auction worth $9 Million.

As per the OpenSea data, Galaxy launched the NFT project with “Stradivari’s Legacy: The ‘Empress Caterina’” name in May 2024 over the Ethereum (ETH) blockchain. With only 1 item in the bucket and 1 unique owner, the project is all set to add value to real-world assets.

Influence of the New Launch on the Global NFT Market

Galaxy Digital and Animoca Brands‘ introduced the new NFT projects at the time when the NFT market was showing cold performance.

According to CryptoSlam, the NFT market encountered a fall after May 2022. The total sales recorded on May 1, 2022, was $579,104,274.09 with 74,493 unique buyers and 67,468 unique sellers.

Global NFT Sales Volume I Source: CryptoSlam

on June 3, 2024, the sales were recorded at $17,118,789.33 with 62,093 unique buyers and 37,142 sellers. Moreover, the sales volume in the past 24 hours was $19,531,333, after a spike of 20.37% and 237,816 total transactions.

Additionally, the Global NFT market holds a sales volume of $64,735,301,179 and total transactions of 314,979,193 with $2,004,949,104 in trade volume. According to CryptoSlam data, Bitcoin Puppets, Guild of Guardians Avatars, and Uncategorized Ordinals are a few of the ranking NFT collections by sales volume.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.