Every user can participate in a future sale, provide a guarantee or make a complex financial contract on an artwork in a peer-to-peer transaction, secured by blockchain technology
The Art Exchange is the first online platform for trading tokenized fine art and art derivatives*
Available on the platform to make smart contracts
THE SPIRIT OF THE ROSE
Available on the platform to make smart contracts
Pablo Picasso, LE CONDOR
Sold for $370,875 (below its estimate)
Marina Abramovich, THE LIFE
Sold for $16,595,850 (within its estimate)
David Hockney, PORTRAIT OF SIR DAVID WEBSTER
Sold for $1,192,084 (within its estimate)
Lucio Fontana, CONCETTO SPAZIALE, ATTESE
Sold for $4,862,488 (within its estimate)
Francis Bacon, STUDY FOR A PORTRAIT
Contribute to the transparency and efficiency of the art market
- Access cherry-picked artwork with verified prices in the blockchain
- Take the desired exposure and hedge desired risks
- Make complex financial contracts on future sales
Increase liquidity of art as an asset class
- Tokenize the artwork from one’s collection
- Lend and borrow with art or its fraction as a collateral
- Sell artwork by fractions to multiple co-investors
Lower the entry barriers to the art market
- Buy a fraction of artwork
- Participate in future sales with as little money as you want
Collectors can:
Tokenize selected artwork from your collection if the pictures are verified by the trusted art experts and institutions
Get an art-secured loan if you need liquidity
Art investors can:
Have a share in world-famous artwork and trade peer-to-peer derivatives on it
Provide a loan that is overcollateralized by a piece of art and earn an attractive interest
All platform users can:
Buy insurance, provide a guarantee or make a complex financial contract on a future artwork sale (so-called derivatives)
Participate in future auctions sales of the leading auction houses with as little money as you want
How it works?
This Pissarro will sell for $14M
It will get no more than $10M
Pissarro
$12M
February
$12M
February
Contract on Pissarro
Sold for $17.2M
Contract autoexecuted
The platform locks collateral until the maturity date. After, the platform executes contracts, including profit or loss
1.
Instruments for collective ownership: tokenization
A collector brings in an art piece to be either sold fractionally or to borrow money against it. The artwork is tokenized and listed on the platform with the desired specifications. Multiple investors either buy fractions of the artwork or lend money to the collector.
The collector pays off the loan and the accumulated interest to the investors. If the art piece was offered for sale, The Art Exchange team will sell it in the most favorable moment to fetch a higher price. The proceedings are shared with investors in proportion to their share of ownership in the artwork.
2.
Instruments for risk-sharing: future sales, guarantees, bets, etc
The Art Exchange experts cherry-pick the most interesting artwork among those to be offered on the evening sales by one of the auction houses and transfer the price to blockchain.
On the platform, registered users can “bet” against each other, hedge the risks or create complex financial contracts on the outcome of the future sale. After the art piece is sold, the contracts are self-executed and the winning party receives money.
3.Innovative instruments to transfer verified prices of selected artworks to blockchain and support other infrastructure initiatives
400
20,000
10,000
William Claesz Heda, 1631
As a guarantee for a $1M loan with 5% interest
As a guarantee for a $1M loan with 5% interest
in 4 months time
interest
interest
interest
Investors receive interest monthly, the principal amount is paid in full at the end of the loan agreement
Inna Bazhenova
publisher and the owner of The Art Newspaper international network, collector, art patron, participant in and driving force of cultural projects, and businesswoman.
Andrey Belyakov
member of the CFA Institute, a professional derivative trader and fund manager with 10 years of experience with 30 billion EUR AUM portfolios, entrepreneur, private venture investor and advisor to several fintech startups.
Anna Leven
project and content manager with experience in art publishing and startup scene.
Our roadmap
2019 Q4 Prototyping
Built and successfully tested the prototypes
QRT 4
2020 Q1 Blockchain oracles
Develop a sustainable method to transfer real-world data to blockchain
QRT 1
2020 Q2 First distributed derivatives
Implement peer-to-peer trading
QRT 2
2020 Q3 Bond fund and legal framework
Introduce overcollateralized loans against art.
Obtain licenses and prepare documents for tokenization
Obtain licenses and prepare documents for tokenization
QRT 3
2020 Q4 Tokenization
Execute first pubic tokenization
QRT 4
2020
2021