Liechtenstein-based VP Bank is observing rising demand for the tokenization of collectibles in Asia, following the launch of its blockchain offering in the region.
Blockchain technology continues to rapidly develop with growing forms of application across all facets of finance and beyond, including art. While non-fungible tokens (NFT) have often stolen headlines in the space, there are also other emerging use cases, such as asset tokenization.
«Asset tokenization could revolutionize the way of collectibles investment,» said VP Bank Singapore branch head Johnny Heng in a conversation with finews.asia.
«In the future, tokens with physical underlying value could well become an important part of clients’ overall asset allocation, just like the other alternative investments like private markets and hedge funds. The potential is very large.»
Liechtenstein Law
According to Heng, the bank expects asset tokenization to continue trending upwards as a business opportunity and decided to launch its own offering in Liechtenstein where it could leverage the nation’s unique blockchain law, which allows tokenization of all types of assets as well as rights with clear requirements and investor protection.
«While both Liechtenstein and Singapore have seen a surge in interest and volume in tokenization, Liechtenstein has a specific blockchain law that sets out the requirements and investor protection very clearly,» Heng added.
«It gives both service providers and investors a very stable and, for the first time, clear legal framework.»
Singapore Access
Thereafter, VP Bank allowed interested clients in Singapore to be referred to Liechtenstein to tap new opportunities from the broader region.
«Singapore is a key wealth management market with clients from not only Asia but globally. Many of them are enthusiastic collectors,» Heng said. «Interest from clients of VP Bank Singapore is picking up nicely, both from private individuals as well as from institutional asset managers in the collectibles space.»
VP Bank’s offering allows clients to tokenize high-value collectibles for fractional ownership, which lowers the traditionally high barrier to entry. The bank also offers reporting via a classic account statement with an ecosystem of external partners that can support valuation, safekeeping and art financing needs.
