Polygon-based lending platform to offer cryptocurrency liquidity for high-end goods

A blockchain-based lending platform is set to address the liquidity challenges faced by owners of luxury collectible items when they want to convert their assets into cash. Davide Rovelli, an advisor to asset-backed lending platform Altr, explained that collectors encounter various issues when selling their items, such as receiving lower offers from dealers who need to make a profit upon reselling. Alternatively, opting for auctions requires extensive preparation and the payment of third-party fees. Rovelli believes that blockchain technology can offer a solution to these problems. By digitizing their collectibles and creating a digital certificate of ownership on the blockchain, collectors can use these digitized assets as collateral to quickly obtain on-chain loans. Rovelli emphasized the importance of tokenization, which provides an additional layer of transparency in a sector that traditionally lacked it. This approach not only enhances security but also unlocks the economic value of luxury items, representing a shift in leveraging these assets in the digital age. Rovelli also highlighted the compatibility between Web3, which prioritizes transparency and security, and the luxury industry’s requirements. A Web3-based system can confirm the authenticity of high-end products and track their history, making it extremely difficult to counterfeit luxury goods.