Polygons Lending Platform use Crypto Liquidity For Luxury Goods

Polygon lending platform Atr aims to address liquidity issues for item collectors using blockchain technology.

A polygon-based financing platform will use blockchain technology to solve the liquidity issues faced by luxury collector item owners when trying to convert their assets into cash.

According to Davide Rovelli, an advisor for polygon financing platform Altr, luxury item collectors encounter a number of challenges when trying to turn their assets into cash. Collectors may receive lower bids when selling to dealers since merchants must make money on the resale of the artifacts. Although going through an auction can result in higher pricing, it will also involve more preparation work and third-party fees.

According to the executive, polygon-baseed financing platform will use blockchain technology to alleviate these difficulties for collectors. Collectors can digitize their items, get a digital ownership certificate within the blockchain and quickly get on-chain loans by using the digital assets as collateral according to Rovelli.

“The blockchain gives the opportunity to access on-chain liquidity that has never played a role in the traditional market of collectibles. By bringing this world on-chain, crypto holders, crypto funds and VCs [venture capitalists] can be exposed to the luxury collectibles space.”

As Rovelli clarified, there has been debate in the cryptocurrency community on the tokenization of real-world assets (RWAs). Rovelli explained that tokenization adds an “extra layer of transparency in a sector where transparency was never the strength” when asked about its significance.

This enables users to bring assets on-chain after they have been certified, appraised and stored he continued. Because consumers can use the digital tokens that represent the assets as collateral for blockchain-based loans, this offers improved security and nearly instantaneous liquidity. Rovelli’s strategy revolutionizes the utilization of luxury assets in the digital age and unlocks the economic value of luxury goods.

Furthermore, Rovelli contended that Web3, with its emphasis on security and transparency, is ideally suited to the demands of the luxury market. This is because Web3 provides a means of tracking their history and “confirming the genuineness of high-end products.” According to Rovelli, a Web3-based system might make it “almost impossible” to imitate premium items.