• AllianceBlock and Artbanx are partnering to create a decentralized lending platform for art collectors.
• The platform will allow users to use their physical art as collateral to obtain asset-backed loans.
• This offering combines the traditional finance and DeFi ecosystems and reduces time to market and costs of development.
AllianceBlock, the decentralized finance ecosystem provider, and Artbanx, a leading platform for buying, selling, and managing art, have recently announced that they are partnering to create a decentralized lending platform for art collectors. This unique service is the first of its kind and is a bridge between the traditional finance and DeFi ecosystems.
Through Artbanx, physical art owners will be able to obtain loans against their assets in a decentralized way. The platform will take advantage of AllianceBlock’s ready-made DeFi infrastructure, Nexera ID and the MetaNFT standard. This will allow them to reduce the time to market by up to eight months while saving 70% on the costs of developing such a platform.
The offering means that owners of physical artworks will be able to take advantage of a financing option that was previously only available through banks and specialized art-lending firms. Previously, the owner of the art would have to hand over possession of the piece to the lender in order to receive a loan against it.
The AllianceBlock and Artbanx partnership is providing a new option for art collectors, allowing them to keep ownership of their art but still gain access to a loan against it. The loan is asset-backed and liquidity providers are able to earn stable yield in return for fronting the capital.
The decentralized lending platform is a great opportunity for art collectors to gain access to a financing option that is secure, reliable, and cost-effective. The platform is also drawing attention to the possibilities of Web3, and showing how traditional Web2 companies can leverage the advantages of DeFi to create innovative products and services.