The Syz Group has tokenised one of the works of art in its collection and is giving the tokens away to its employees. Syz is thus taking a practical step into a field of cryptos that will also become increasingly important for investment clients because it opens up new ways of dealing with art assets.
Using the Taurus-CAPITAL tokenisation product from technology partner Taurus and advised by the Swiss law firm, Schellenberg Wittmer, Syz Group has issued and deployed the tokens on the Ethereum Blockchain. The tokens will be donated to all Syz Group employees, who will collectively own the piece of art „Dreamstime“ by Sarah Benslimane. Employees will also be able to transfer the token to their private wallet and hence retain, buy, or sell it. The insights gained from this internal pilot programme will inform the future development of Bank Syz’s digital asset offering for its clientele, building on their already existing cryptocurrencies trading and custody services.
On a broader level, the democratisation of art ownership via tokenisation creates opportunities for individuals to invest in and benefit from the arts market. While these markets are traditionally illiquid, tokenisation will enable the trading of art tokens via blockchain-based platforms which will enhance liquidity. This will lead to a more efficient art market, with reduced transaction costs and faster settlements. Finally, the strategy offers new possibilities for estate planning by allowing for fractional inheritance of art assets, making it easier to divide valuable assets among multiple beneficiaries, and reducing possible conflict among heirs.
For more information about the Syz Group’s tokenisation project click here: https://blog.syzgroup.com/crypto-corner/are-we-ready-to-tokenise-the-syz-art-collection