AllianceBlock, a leading infrastructure provider for decentralized tokenized markets, has launched Arkefi on the Avalanche ecosystem in a move that promises to redefine the landscape of high-value asset investments.
This real-world asset (RWA) investment platform, backed by the art investment company ARTBANX, aims to democratize access to exclusive art, luxury cars, and collectibles.
Arkefi: A New Way to Invest in Luxury Assets
Arkefi is a platform that leverages blockchain technology and decentralized finance (DeFi) principles to unlock liquidity for traditionally illiquid and unbankable assets.
It allows investors to purchase fractions of high-value assets at half their market price, with a guaranteed return of up to 50%.
The platform also offers the option to acquire full asset ownership if the seller does not execute their buy-back option within a specified period.
Arkefi’s launch is timely, coinciding with the rising popularity of fractional ownership in various sectors. Fractional ownership refers to the shared ownership of a high-value asset, such as real estate or luxury items.
It allows individuals to purchase a fraction of an asset, thereby enjoying the benefits and privileges of ownership without bearing the full cost.
How Arkefi Enables Fractional Ownership of High-Value Assets
Arkefi works by creating on-chain options for high-value assets, such as artworks, cars, and collectibles. These options are represented by non-fungible tokens (NFTs) that are issued on the Avalanche blockchain.
The NFTs are then divided into smaller units that investors can easily buy and sell.
The platform’s inaugural luxury collectible investment will spotlight the globally acclaimed Danish-Vietnamese installation artist Danh Võ.
Based in New York City, Võ’s works have been showcased at prestigious institutions like La Biennale di Venezia and the Solomon R. Guggenheim Museum. Notably, his art pieces have experienced consistent annual appreciation rates exceeding 10%.
Investors can purchase fractions of Võ’s artworks at 50% of their market value for a specific time.
If the seller executes the buy-back option within the allotted time, the investors will receive their principal along with the predetermined return in their wallets.
Also, if the seller does not execute the buy-back option, the investors will gain full ownership of the artworks, unlocking the limitless potential for future gains.
Arkefi to Run on Avalanche’s Scalable Blockchain
Arkefi is launching on Avalanche, a highly scalable and interoperable blockchain platform that supports various DeFi applications and protocols. Avalanche offers fast transaction speeds, low fees, and high security for users and developers.
By launching on Avalanche, Arkefi aims to provide a seamless and user-friendly experience for investors who want to access high-value assets through fractional ownership.
AllianceBlock, a provider of infrastructure for decentralized tokenized markets, powers Arkefi. AllianceBlock enables businesses to compliantly issue, manage, and trade tokenized digital assets across different blockchains.
The project also provides data services, liquidity mining, cross-border regulatory compliance, and decentralized governance for its ecosystem.
