Zurich, 25 May – Fillette au béret (Picasso, 1964), the first Picasso painting tokenised by a regulated bank was sold recently bringing a total return of ~20 percent since the investment started in October 2021. Over 60 tokenholders participated in this successful investment collaboration between Artemundi and Sygnum Bank, setting a new precedent for art investment.
“After many years managing investment fund structures, this tokenisation experience revealed that art trade fundamentals remain relevant. By ensuring quality, provenance, conditions and pricing, the fractional ownership of artworks via a blockchain perfects the direct ownership without costly intermediaries,” says Javier Lumbreras, CEO of Artemundi.
“The sale of Fillette au béret, the first Picasso painting tokenised by a regulated bank, makes the benefits of tokenisation tangible for tokenholders. This includes unique art investment and portfolio diversification with the potential for significant returns,” acclaimed Fatmire Bekiri, Sygnum’s Head of Tokenisation, on the successful conclusion of the investment cycle of this pioneering Art Security Token (AST).
Pioneers providing tangible results for investors
Artemundi and Sygnum Bank embarked on this tokenisation project in 2021. This partnership marked the first time that art ownership rights, with a Picasso masterpiece, were broadcast onto a public blockchain by a regulated bank; and investors purchased and traded direct fractional ownership in the artwork, in the form of Art Security Tokens (ASTs).
ASTs facilitate access to digital marketplaces and reduce barriers to entry into the art market. Under Swiss banking regulation, institutional and private investors could buy, sell or trade the fractional ownership of Picasso’s Fillette au béret (with the token PIC1), starting at CHF 1,000 per token on SygnEx, Sygnum’s blockchain-based organised trading facility (OTF).
Frictionless purchase and sale of artwork with multiple owners
Buying and selling tokenised art is very similar to traditional methods. Blockchain technology makes this process more secure, compliant and efficient when ownership is spread across multiple investors.
A purchase offer for the painting from an interested buyer – that provided significant returns – was communicated to tokenholders, who could all vote on the sale decision. Over two thirds voted in favour, and Artemundi executed the sale.
Net proceeds were distributed to tokenholders’ wallets at Sygnum Bank using smart contract technology. With the distribution of the proceeds, the tokenholders’ ownership of the painting was transferred to the new buyer, and their tokens were burned.
 Returns may vary between tokenholders who purchased tokens at different times due to changes in asset valuation over time and differences in the pro-rata share of administrative expenses.
Sygnum is the world’s first digital asset bank, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in the digital asset economy with complete trust. Our team enables this via personal, expert service and secure, convenient access to our integrated portfolio of crypto banking, asset management, tokenisation and B2B banking services.
Sygnum is a licenced Swiss bank and is also regulated in the established global financial hubs of Singapore, Abu Dhabi and Luxembourg. We believe that the future has heritage. Our diverse crypto-native team of banking, investment and digital asset technology professionals are building a trusted, regulated bridge between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum is shaping this trusted digital asset ecosystem, please visit sygnum.com.
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This document was prepared by Sygnum Bank AG. This document may contain forward looking statements and may be subject to change. The opinions expressed herein are those of Sygnum Bank AG, its affiliates, and partners at the time of writing. The document is for informational purposes only and contains general material. It is for use by the recipient only. It does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum Bank AG to purchase or sell assets or securities. It is not intended to be used as a general guide to investing, and should be used for informational purposes only. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert to make a calculated decision. The information and analyses contained in this document have been compiled from sources believed to be reliable. However, Sygnum Bank AG makes no representation as to its reliability or completeness and disclaims all liability for losses arising from the use of this information.
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