Altr adviser Davide Rovelli believes that asset tokenization could give an extra layer of security to a sector where “transparency was never the strength.”
A Polygon-based lending platform will use blockchain technology to solve the liquidity issues luxury collectible item owners face when converting their assets into cash.
Davide Rovelli, an adviser to asset-backed lending platform Altr, told Cointelegraph that luxury item collectors face several problems when converting their assets into cash. When selling to dealers, collectors could receive lower offers as dealers need to profit when reselling the items. Taking the auction route could raise better prices but also takes a lot of preparation and requires the payment of third-party fees.
The executive believes that blockchain can play a role in solving these hassles for collectors. According to Rovelli, collectors can digitize their collectibles, create a digital certificate of ownership within the blockchain and use the digitized assets as collateral to obtain loans on-chain quickly. Rovelli explained:
