The ‘Car Token’ that is backed by luxury cars will be pegged to the value of collectible cars, which will give the chance to have a fraction of an asset.
Jim Needham, head of strategy at MERJ Exchange, said:
“MERJ Exchange is the only regulated market globally that can support digital securities like this. CurioInvest has identified pent up demand from hedge funds and wealth managers. Through MERJ Exchange, CurioInvest can create an access point for investors to be compliant from end to end.”
CurioInvest plans to allow investors to track their vehicles via webcam in the future, as well as engage in driving experiences.
Fernando Verboonen, founder of CurioInvest, said:
“Most investors have had to sit and watch as elite asset classes outperformed equities and bonds. CurioInvest and MERJ offer these investors a unique way to access these assets, tokenized on a distributed ledger, and available on traditional securities markets infrastructure. This is the best of all worlds.”
The token will soon be offered through the MERJ Exchange. In 2019, MERJ was the first local exchange to launch a tokenized Initial Public Offering (IPO).
“When you look at fine art, collectible cars, they have been perceived historically as safe havens. They’re held by very few and by bringing a different technology, we’re making it truly possible for everyone to benefit from those features or traits that define the asset class as a whole,” Verboonen said.
Most importantly, the firm considered the vehicles as real assets subject to material risks such as potential damage, adding:
“The value of an investment is determined by market forces and thus, it can fluctuate in both directions. You will make a profit if the value of the vehicle exceeds maintenance costs when it is resold by Curio. If you are selling Car Tokens peer-to-peer, there is no guarantee that you will locate a buyer willing to purchase them at your desired price.”
Cryptolydian earlier reported another partnership agreement between ErisX, a digital asset trading platform, and softer provider Etale to improve investors’ trading experience.