Polygon-based lending platform to provide crypto liquidity for luxury goods

The Polygon-based lending platform uses blockchain technology to solve the luxury issues owners face when turning their assets into cash.

David Rovelli, a consultant at asset-backed lending platform Altr, told Cointelegraph that luxury collectors face many challenges when it comes to cashing in their assets. When selling to dealers, collectors can get lower discounts because dealers need to make a profit on reselling the items. Taking the auction route can add better value but requires more preparation and third-party fees.

The executive believes that blockchain can play a role in solving these problems for collectors. According to Rovelli, collectors can digitize their collections, create a digital certificate of ownership in the blockchain, and use digitized assets as collateral to quickly obtain loans on the chain. Rovelli explained:

“Blockchain provides an opportunity to access on-chain liquidity that has not played a role in the conventional aggregator market. By bringing this world on-chain, crypto holders, crypto funds and VCs [venture capitalists] It can be exposed to luxury gathering place.

Real-world asset tokens (RWAs) are a growing topic of discussion in the crypto space. When asked about the importance of tokenization, Rovelli shared that it would provide “more transparency in a sector where transparency has never been a strength.”

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This allows users to bring assets on-chain after they have been authenticated, evaluated and stored, he said. This allows for improved security and faster cash flow, as users can use digital tokens that represent assets for blockchain-based loans. Rovelli believes that this approach unlocks the economic value of luxury goods and represents a change in the use of luxury goods in the digital age.

Rovelli also argued that Web3's focus on transparency and security is in line with the needs of the luxury industry. That's because Web3 provides ways to “verify the authenticity of high-end products” and track their history. Web 3-based systems make counterfeiting of luxury goods “almost impossible,” Rovelli said.

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