Asset-Backed Loans for Arts & Collectibles; Codex Partners with Luxury Asset Capital
Astute investors have looked toward the USD 2 trillion A&C asset class for centuries for low correlation to financial markets, risk-aversion, tax efficiency, simplicity, and aesthetic delight. With asset-backed loans, these high-value but often illiquid assets are used as collateral for capital.
The Codex Protocol and Luxury Asset Capital partnership facilitates asset-backed loans for items that hold a Codex Record, including unique assets like art, jewelry, diamonds, luxury accessories and more. The provenance data of the piece stored in the Codex Record proves its value and provides access to leverage the assets they own.
“Collateralized financing is a proven method for solving challenges requiring the need for a short-term capital infusion, and the partnership with Codex Protocol is an exciting way to become an ongoing financial resource to our clients,” Dewey Burke, President, and CEO of Luxury Asset Capital.
Codex Records are tokens used within Codex Protocol’s decentralized title registry to store information privately in a way that service-providers can easily interact with the piece it represents. As interactions like loans occur, more and more is known about the piece, enhancing its provenance and providing better visibility into its monetary value.
Proving provenance is critical to being able to use an item as collateral for a loan. Today this verification process can take 5–8 weeks to establish ownership and verify historical records. Using Codex, this process will be faster, more easily verifiable, and the loan documentation will automatically become a part of the item’s Codex Record.
Luxury Asset Capital is a leader in the fast-growing online alternative lending market, providing capital to individuals and businesses in exchange for luxury assets that are either purchased or held as loan collateral.
At Codex Protocol, we’re thrilled to work with Luxury Asset Capital and our partners to build upon the opportunities blockchain technologies present for transformation across the art & collectibles market.
About Luxury Asset Capital
Luxury Asset Capital is a leader in the alternative financing market. Through its online platform, Lux Exchange, the company provides capital to individuals and businesses in exchange for luxury assets that are held as collateral. Lux Exchange provides capital when traditional channels of financing are either too slow, invasive, burdensome or, in some cases, unavailable. Transactions are executed in as little as one business day and generally range from $2500 to $5,000,000 or more. For more information, please visit: www.theluxexchange.com.
Codex is the leading decentralized asset registry for the $2 trillion arts & collectibles (“A&C”) ecosystem, which includes art, fine wine, collectible cars, antiques, decorative arts, coins, watches, jewelry, and more. Powered by the CodexCoin native token, the Codex Protocol is open source, allowing third-party players in the A&C ecosystem to build applications and utilize the title system. Codex’s landmark application, Biddable, is a title-escrow system built on the Codex Protocol, which solves long-standing challenges in auctions: non-performing bidders, lack of privacy, and bidder access. The Codex Protocol and CodexCoin will be adopted as the only cryptocurrency by The Codex Consortium, a group of major stakeholders in the A&C space who facilitate over $6 Billion in sales to millions of bidders across tens of thousands of auctions from 5,000 auction houses in over 50 countries.
Nothing herein constitutes an offer to sell, or a solicitation of an offer to buy, in any jurisdiction in which it is unlawful to make such an offer or solicitation. Neither the U.S. Securities and Exchange Commission nor any other federal, state, or foreign regulatory authority has approved an investment in the matters contemplated herein.