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Block #9

Tokenisering (RWA)

Worked example: art tokenisation

To show how art tokenisation works in practice, we walk through one file end to end. The example is fictional but realistic: a post-war work by an established European artist valued at 1.8 million euro, offered in one thousand fractions by a Dutch platform.

Lieke van DijkSkrevet av Techredacteur, UtrechtOppdatert Kvalitetssikret av redaksjonen

The case in brief

A collector wants liquidity without losing the work. He sells the painting to a special purpose vehicle and keeps twenty per cent of the shares. The remaining eighty per cent is offered as one thousand tokens of 1,440 euro each.

The work stays in a certified art depot in Amsterdam and is periodically loaned to museums. The target horizon is seven years, with a sale decision requiring a two-thirds majority of token holders.

Key figures

Appraised value
1,800,000 EUR

Two independent appraisers

Offered
80%

Seller retains 20%

Ticket size
1,440 EUR

1,000 tokens

Running costs
2.1% per year

Storage, insurance, admin

Issuance costs
6.5% one-off

Structuring and legal

Horizon
7 years

Extension by majority vote

Process steps from start to finish

From first meeting to issuance takes four to six months. The heavy lifting is provenance research and legal structuring, not technology.

Provenance is the most underrated step. A gap in the ownership chain between 1933 and 1945, a missing export licence or a contested attribution makes a work unsellable regardless of how elegant the token structure is.

From first appraisal to payout

  1. 01

    1. Selection and indicative appraisal

    Weeks 1-3

  2. 02

    2. Provenance and authenticity research

    Weeks 3-10, Art Loss Register

  3. 03

    3. Incorporating the vehicle

    Weeks 8-12, notary and statutes

  4. 04

    4. Purchase and delivery to the SPV

    Week 12

  5. 05

    5. Depot, insurance, condition report

    Weeks 12-14

  6. 06

    6. Prospectus or exemption document

    Weeks 10-16, regulator

  7. 07

    7. Token issuance

    Weeks 16-20, KYC and whitelisting

  8. 08

    8. Management and annual revaluation

    Ongoing

  9. 09

    9. Sale decision and distribution

    Years 5-7

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Who is at the table

An art case involves more parties than most investors expect, and the party that is missing tells you most about the quality of the offer.

Watch the separation of roles. When the operator is appraiser, custodian and seller at once, no website copy fixes that conflict of interest.

Parties and their role

PartyRoleRisk if it fails
Seller/collectorSupplies the work, keeps 20%Hidden provenance defects
Special purpose vehicleLegal ownerNot bankruptcy remote
Independent appraiserValuation at start and yearlyInflated entry value
Art depotStorage, climate, securityDamage or theft
InsurerAll-risk policy at nail valueUnderinsurance after appreciation
ConservatorCondition report and careCondition loss cuts price
RegulatorProspectus or exemptionOffer without legal basis
Platform/issuerToken register and adminConflict of interest, discontinuity
Auction houseExit route15-25% commission on exit

The maths of the exit

Suppose the work sells at auction for 2.6 million euro after seven years, up more than forty-five per cent. Auction commission of roughly eighteen per cent leaves about 2.13 million euro.

Deduct seven years of running costs averaging 2.1 per cent, roughly 290,000 euro, plus 117,000 euro of issuance costs already embedded in the entry price. What remains is around 1.84 million euro on a 1.8 million investment: a forty-five per cent gross gain evaporates into almost no return.

That is the essence of every art case. The work must appreciate substantially, not slightly, before the investor sees anything. Model each offer with the full cost ladder, never with brochure figures.

  • Auction commission is the largest exit cost
  • Running costs compound across the full holding period
  • Issuance costs are paid at entry, not at exit

What to check

Run the same checklist on every art offer; a vague answer is itself an answer.

  • Is the work held in a separate, bankruptcy-remote vehicle?
  • Are there two independent and recent appraisals?
  • Is provenance documented, including 1933-1945?
  • Does the policy cover full nail value in transit and on loan?
  • Who decides on a sale, and with what majority?
  • What happens to the work if the platform stops?
  • Is there a realistic secondary market?
  • Are all costs shown in one table, including exit commission?

Ofte stilte spørsmål

Can I view the painting myself?

At serious platforms yes, usually through a scheduled depot visit or during a museum loan. A structural refusal is a red flag.

Do I receive income along the way?

Rarely. Art produces no cash flow; loan fees typically only offset part of storage and insurance. Return comes entirely from the sale.

Can I sell my tokens early?

Only if the platform runs a secondary market of whitelisted investors. Expect a discount to appraised value.

Does such a token fall under MiCA?

No. A shareholding is a security, so securities and prospectus rules apply instead.

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