The world of investing in fine art, rare collectibles, and high-value real-world assets (RWAs) is undergoing a significant transformation with the advent of Web3 technology and DeFi. AllianceBlock, a renowned decentralized tokenized market infrastructure provider, has introduced Arkefi to the Avalanche ecosystem. In collaboration with leading art investment firm ARTBANX, Arkefi is set to reshape RWA investments by offering crypto investors and High-Net-Worth Individuals (HNWIs) an accessible pathway to invest in prestigious artworks, automobiles, and collectibles.
Despite the opulence of the treasures showcased on Arkefi, the platform’s philosophy remains open and inclusive. For instance, the initial listing welcomes investments as small as $100 USD.
Arkefi’s inaugural luxury collectible investment will feature the renowned Danish-Vietnamese installation artist, Danh Võ, based in the thriving art hub of New York City. Võ’s artwork has garnered international acclaim, gracing prestigious events and venues such as La Biennale di Venezia, the Solomon R. Guggenheim Museum in New York City, and Palazzo Grassi in Venice. Notably, Võ’s artwork consistently exhibits yearly appreciation rates exceeding 10%.
By harnessing the power of blockchain technology and decentralized finance (DeFi), Arkefi aims to enhance access to high-value and unique assets within a transparent and user-friendly platform. This includes making illiquid and traditionally unbankable assets more liquid. Backed by AllianceBlock’s blockchain expertise and ARTBANX’s art sector experience, Arkefi is poised to revolutionize how individuals invest in tangible assets.
Key Features of Arkefi
Arkefi sets itself apart by prioritizing user accessibility, transparency, and ease of use within the framework of AllianceBlock’s decentralized platform. Notable features include:
- Unlocking Liquidity for High-Value RWAs: HNWIs can utilize Arkefi to unlock the liquidity of their high-value RWAs by using these assets as collateral to access funds.
- Earnings on Investment: Investors benefit from clear advantages. In the event of a buy-back, the principal and pre-agreed return are promptly credited to the digital wallet. In cases where buy-backs do not occur, purchasers gain full ownership, creating additional profit potential.
- RWA Digital Twins: Arkefi employs tokenization and fractionalization technology to represent high-value artwork as digital twins on-chain using the Nexera Protocol. This enables art investment and fractional ownership.
- Digital Twins with Partial Ownership: Arkefi’s partial ownership feature allows a broader range of investors and art enthusiasts to invest in tokenized artworks, enabling modest capital contributions for a share of the artwork.
- Streamlined User Experience: Arkefi provides user-friendly, step-by-step instructions to ensure easy navigation on the platform.
Curation and Preservation: Adding Value Beyond Investments
Arkefi goes beyond its role as an investment platform by enhancing value through curation, authenticity, and preservation:
- Secure RWA Storage: Only artworks that meet stringent criteria are listed for sale, and they are securely stored in Swiss bonded warehouses to preserve their value.
- Investor-Friendly Holding Terms: Sellers can utilize their collections as a source of liquidity. Artworks are tokenized and displayed on the platform to raise capital. In the absence of buy-backs, buyers retain ownership, offering further profit potential.
What’s Next for Arkefi
The collaboration between ARTBANX’s expertise and AllianceBlock’s technology sets a new standard for tokenizing RWAs. Future updates will see the integration of NexeraID, AllianceBlock’s identity management and compliance system, along with secondary market trading, dynamic pricing mechanisms, insurance pools, and an expansion of Arkefi’s product portfolio to encompass additional high-value asset classes such as automobiles and diamonds.
Arkefi, with its user-friendly approach and AllianceBlock’s support, is transforming the landscape of RWA investments by democratizing access to fine art and rare artifacts. By merging the worlds of valuable art and decentralized finance, Arkefi’s debut aligns with AllianceBlock’s mission of laying the foundation for a decentralized tokenized market.
“I’m thrilled to witness DeFi’s potential in reshaping high-value real-world asset investment. Arkefi’s launch on the Avalanche network brings an already established model into the dynamic world of Web3. By combining our innovative tokenization infrastructure with ARTBANX’s expertise, we’re democratizing investment in art and collectibles, making it more equitable, efficient, and accessible for all,” said Matthijs de Vries, CTO and Founder of AllianceBlock.