Galaxy Digital, the company owned by Michael Novogratz, has transformed a Stradivarius violin worth $9 million into a tokenized asset to be used as collateral for a loan. The violin, which was crafted in 1708 and previously owned by Russian Empress Catherine the Great, is considered to be of the highest quality due to its association with the renowned Stradivari family. The loan was granted to Yat Siu, co-founder of Animoca Brands, who purchased the violin at an auction last year. Galaxy Digital will hold both the physical violin and a nonfungible token (NFT) representing it as collateral. The instrument will be stored by a custodian in Hong Kong and its removal requires approval from both parties. The terms and size of the loan were not disclosed, but it was confirmed to be in the millions. Galaxy Digital aims to expand its clientele by offering loans backed by valuable assets, tapping into the increasing wealth generated by the rise in cryptocurrency prices.
